Production
2007 total oil and gas production was 9.8 million barrels of oil equivalent (mmboe) compared to 10.2 mmboe in 2006. Despite limited development drilling activity during the year and an extended shut-in at NW Moran, gross daily production from the PNG oil assets was only 6% lower than in 2006, a good result for this mature asset set, reflecting the continued success of Oil Search’s active field management programme.
Total oil and gas production in 2006 was 10.2 million barrels of oil equivalent, 16% below 2005 levels, with 2006 production impacted by the sale of a range of field interests to AGL, which reduced Oil Search's share of 2006 production by approximately 2.5 million barrels. 2006 benefited from first production from the SE Mananda field and a full year's contribution from Nabrajah, albeit both at lower than anticipated levels. In addition, the Moran field performed well, with almost a full year's production from the NW Moran Extended Production Test. Contributions from Kutubu and the Gobe fields were lower than in 2005 due to natural field decline and production interruptions.
Reserves
As at 31 December 2007, the Company had 1P reserves of 52.6 million barrels of oil equivalent and 2P reserves of 73.5 million barrels of oil equivalent. The Company also had 952.0 million barrels of oil equivalent, comprising gas and associated liquids, in its resource inventory, taking the Company’s total 2P oil and gas reserves plus gas and associated liquids resources to 1,025.5 million barrels of oil equivalent.
As at 31 December 2006, the Company had 1P reserves of 61.4 million barrels of oil equivalent, and 2P reserves of 81.7 million barrels of oil equivalent. The Company also had 941.5 million barrels of oil equivalent, comprising gas and associated liquids, in its resource inventory, taking the Company's total 2P oil and gas reserves plus gas and associated liquids resources to 1,023.2 million barrels of oil equivalent.