Oil Search posts record 2005 revenue - Breaking News - Business - Breaking News:

Shares in Oil Search have slipped lower despite the group posting record revenue on the back of all-time high production and booming oil prices.
The Sydney-based energy company posted a 60 per cent hike in full year sales revenue to $US638.4 million ($A848.03 million).
The massive jump in revenue came from record production of 12.2 million barrels of oil equivalent (Mmboe) in 2005.
This was a 10.2 per cent improvement on 2004 and came despite a month-long shutdown at the Kumul loading terminal in Papua New Guinea.
The news wasn't enough to keep its shares above water with Oil Search losing eight cents to $3.82 in a slightly stronger broader market.
In the group's quarterly report, managing director Peter Botten said Oil Search was considering expanding its planned $US3 billion ($A3.99 billion) PNG gas project to meet growing domestic demand.
"There are strong indications that market demand for gas in Australia will be higher than our initial expectations," Mr Botten said.
A final decision on the scope of the project and an updated development cost would be known by the end of the current quarter, followed by a decision on whether or not to proceed by mid-year.
Oil Search is expecting its 2006 production will be marginally lower after earlier this month selling part of its assets in PNG to Australian Gas Light Company.
It is now targeting between 11 and 11.5 Mmboe after the asset sale discounted about 2.9 Mmboe.
The company's quarterly report showed a strong performance from most assets and an increase in sales revenue for the last quarter of 2005.
Production was 3.4 Mmboe, up from 3.2 Mmboe in the September quarter as the Moran oil field in PNG and the Nabrajah field in Yemen boosted output.
Revenue from sales in the fourth quarter of $US203.9 million ($A270.86 million) was 35 per cent better than the same period in 2004.
However, it was a four per cent drop on the September quarter largely due to lower realised oil prices.
The average oil price realised during the fourth quarter was $US59.18 per barrel, compared to $US63.19 per barrel in the third quarter.
The average oil price realised for the year was $US58.06 per barrel, up on 2004's figure of $US41.48 per barrel.
Mr Botten said the SE Mananda development in PNG was expected to come on stream by the end of the first quarter but development costs had increased.
"Total development costs are now expected to be approximately $US140 million ($A185.97 million), higher than previously expected," Mr Botten said.
"(This is) largely due to delays caused by poor weather and design and scope changes to the development."
Macquarie Equities energy analyst Andrew Blakely said this was only a slight negative on an otherwise positive report.
"The only negative was the increase in costs ... but to a certain extent that had been well flagged," he said.
"Overall it is a pretty strong result."
He said he did not know why shares in the company had fallen and believed still represented a good buy at around the $3.80 price.
© 2006 AAP