OIL Search has forecast that production for calendar 2010 will be 10 per cent below that of last year.
Oil search's fourth-quarter result, up 6 per cent on the third quarter, took production for 2009 to 8.1 million barrels of oil equivalent (mmboe). Its forecast range was of between 8 and 8.3 mmboe.
Sales revenue for 2009 reached $US475.8 million ($A529.4 million), 38 per cent lower than in 2008 and reflecting 6 per cent lower production and a 35 per cent drop in the average realised oil price. The average realised oil price in 2009 was $US65.39 a barrel, compared with $US100.10 a barrel in 2008.
Oil Search managing director Peter Botten said the expected 10 per cent fall in production was due to natural decline of oilfields and a revised approach to oilfield management after the decision to go ahead with the Papua New Guinea liquefied natural gas project.
Deutsche Bank said: ''The focus further shifts to the company transforming PNG LNG project. The project achieved a final investment decision during the quarter and remains on track for financial close and signing of the final sales and purchasing agreement in the coming quarter, with first LNG still targeting 2014.''
Oil Search shares dropped 6¢ to $5.36.
MATHEW MURPHY
