Oil Search has recorded a $371.3 million loss in its recently released first half results.
Oil Search Managing Director Dr Kieran Wulff said the unprecedented challenges brought on by COVID-19 and the decline in oil prices had been catalysts for reassessing all areas of the business.
“Without compromising safety or operational performance, we have systemically introduced initiatives to prioritise our activities, sustainably reduce operating costs, reduce current and forward non-core spend and lower breakeven costs for our in-field development and new growth projects,” he said.
“Due to the impact of COVID-19 on the global economy, the market window for major new LNG supply has moved back a few years.
“This delay and the requirement to focus on lowest cost projects has results in all major LNG companies globally revisiting the timing and sequencing of new LNG projects.”
The company had paused its growth projects early this year when the oil prices fell, but Dr Wulff said he was confident those projects would resume in future.
Oil Search did see continued strong performance from the PNG LNG Project, which produced at an annualised rate of 8.7 Mt/a for the first half of 2020 – the second highest half year production since it commenced operations in 2014.
COVID-19 and weaker oil prices forced the company to cut approximately 100 jobs in March this year.
For more information visit the Oil Search website.
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