MELBOURNE (Reuters) - Oil Search is considering cutting its oil production in Papua New Guinea from July due to weak global oil prices, Managing Director Keiran Wulff said on Tuesday.
“Obviously the demand is very soft and inventories are very full,” Wulff said at the Macquarie Australia conference.
He said the company was in talks with the Papua New Guinea government about potentially shutting in oil output, adding that current liquids production was needed as it was produced along with gas for PNG LNG, run by Exxon Mobil Corp.
Oil Search produced 1.57 million barrels of oil last year in PNG.
Reporting by Sonali Paul; Editing by Muralikumar Anantharaman