Oil Surge Does Oil Search Good

Oil Search showed the benefits of the surge in oil prices, especially in the June quarter, with a 52% jump in revenue for the half year to a record $US466.8 million ($A478 million).

Revenue for the second quarter climbed 58.2% to $US294.2 million ($A301.28 million) from the same period in 2007. Second quarter revenues jumped more than 70% from the first quarter, a telling example of the boost oil producers received in the second quarter, when oil prices rose more than 40%.

The company said the result was driven by record average oil prices for PNG crude of US$133.63 per barrel, up 44% on the first quarter of 2008. Oil Search remained unhedged during the period.

This was after production for the three months to June 30 fell 13.4% to 2.12 million barrels of oil equivalent (mmboe) due to the sale of a package of assets in the Middle East and North Africa.

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