The company said the instability of the Kutubu-2 hole had also contributed to its decision.
The well, located in Petroleum Prospecting Licence 219 about 18km east of the main Iagifu-Hedinia field, was targeted primarily at the Toro Sandstone, with a secondary target in the Iagifu Sandstone.
The company will move the drilling rig to the Arakubi-1A exploration well site which is expected to spud in early August.
Oil Search abandoned drilling at Arakubi-1 in August last year due to poor hole conditions in the Darai Formation.
Participants in Kutubu-2 are Oil Search (operator with a 72.52% stake), Ampolex (18.73%) and Merlin (8.75%).
