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The revenue result - the highest in the company’s 76-year history - was underpinned by record production levels of 12.2 million barrels of oil equivalent, which was a 10% rise on the previous year despite the month-long shutdown of the Kumul loading terminal.
The Moran oil field in Papua New Guinea and the Nabrajah field in Yemen made higher production contributions, up 26% and 8% respectively, during the year, according to Oil Search managing director Peter Botten.
“Oil Search delivered a strong performance in 2005, with record oil production from our PNG oil fields, whilst our first overseas oil production commenced at Nabrajah in Yemen,” Botton said.
“There are strong indications that market demand for gas in Australia will be higher than our initial indications.”
Meanwhile, the company said that production in 2006 was expected to be slightly lower than last year, with a forecast output between 11 and 11.5 million barrels of oil equivalent.
This reduction was attributed to the early sale last week of a further 10% interest in the PNG gas project to the Australian Gas Light company, which accounts for 2.9 million barrels.
Sales revenue in the fourth quarter of last year was US$203.9 million (A$271.1 million) – 35% higher than the corresponding period in 2004, but 4% lower than the third quarter of 2005, largely due to lower realised oil prices, Oil Search said.
The company said it was in a very robust financial position at the end of 2005, with US$193.4 million (A$257.1) cash and US$126 million debt (A$167.5 million).
The balance sheet will be further strengthened by receipt of funds from the AGL equity sale, Oil Search said.
Botten said the company was also considering ways to expand the Papua New Guinea gas facilities to satisfy the growing demand for natural gas.
"The final configuration and cost of a higher capacity PNG gas project will be known by the end of the first quarter,” he said.
This year Oil Search will spend between $US100 million and $US110 million on exploration in PNG and the Middle East.
