Gas and oil producer Oil Search has experienced a production decline of 2.212 million barrels during the last quarter due to natural field decline and a shut down at its operations in Papua New Guinea.
The planned shut down in February was to undergo essential maintenance work and repairs to the flare.
Managing Director Peter Botten said “’ This work was carried out efficiently  without any safety incidents and the fields subsequently brought back into production.”
The company is reported to currently be reviewing its 2008 production forecast, following the sale of its Middle East and North Africa assets and slower than expected drilling in PNG.
Oil Search shares were down as much as 4.6%, or 24 cents, to $4.96 after recently trading as high as $4.99.  Sales revenue was down 30% from the December quarter sitting at $UA160.3 million.
Oil Search said ”The consequent higher inventory position is expected to be largely unwound by mid-year.”

The company continued to realise a premium over the benchmark Tapis crude price, reflecting strong demand for PNG crude by the regional refiners, with an average realised oil price for the quarter of $US93.82 per barrel.