By Ross Kelly
SYDNEY--Oil Search Ltd. (OSH.AU), an Australian oil company
focused on Papua New Guinea, said it would cut spending and book an
impairment charge of at least US$150 million due to the plunge in
oil prices.
The company said it would continue to allocate spending to its
two main growth projects: an expansion of its gas-export joint
venture in Papua New Guinea with Exxon Mobil Corp. (XOM), and the
development of the Elk and Antelope gas fields elsewhere in the
country.
"Capital and operating expenditures, outside these priorities,
are being assessed," Oil Search said.
It said revised spending guidance would be provided next month
when it releases its profit result for the year through December.
Impairment charges for the year are likely to be between US$150
million and US$200 million, the company said.
Also Thursday, Oil Search said its revenue for the year to
December more than doubled to US$526.1 million, with the rise
largely attributable to the project with Exxon going live in
May.
Oil Search's oil and gas output for the year almost tripled to
19.3 million barrels of oil equivalent. It forecast that to rise to
between 26 million and 28 million barrels of oil equivalent in
2015.
Write to Ross Kelly at ross.kelly@wsj.com
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