Oil Search revenue declines

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Oil Search’s third quarter revenue has slumped 26.4 per cent from the preceding quarter because of lower oil sales and as the company shut down processing facilities.

The company still forecast that oil and gas production in 2011 would be at the upper end of the previous estimated range of 6.2 million to 6.7 million barrels of oil equivalent (mmboe).

Third quarter operating revenue was $US160.2 million ($A153.4 million), down from $217.8 million in the second quarter, the company said in a statement on Tuesday.

Production for the three months to September was 1.49 mmboe, down 16 per cent from the preceding quarter.

The fall in output reflected a planned two-week shutdown of the central processing facility and the Agogo processing facility at its liquefied natural gas (LNG) project in Papua New Guinea.

Production had since returned to pre-shutdown levels, the company said.

Oil production for the quarter was 1.21 million barrels.

Shares in Oil search gained three cents on Tuesday to $6.05.

At the end of September, Oil Search had $US1.1 billion ($A1.05 billion) in cash, down from $US1.22 billion at the end of June.

Oil Search spent $US55.7 million on exploration during the quarter, $US308.5 million on the PNG LNG project and $US42.6 million on oil field development work.

The company said PNG LNG was continuing, with 40,000 joints of line pipe for the 292km onshore pipeline being delivered.

Shares in Oil Search gained three cents to close at $6.05.