(Corrects paragraph 3 to say top end of investment spending range is $350 million, not $300 million)
April 23 (Reuters) - Oil Search OSH.AX on Friday slashed its planned full-year investment expenditure by 22%, citing cost-savings measures and coronavirus-induced restrictions in Papua New Guinea (PNG), where a majority of the explorer's projects are located.
The country has imposed strict restrictions on movements as it faces a health crisis, with rising COVID-19 infections weighing on its fragile health system. Search said investment spending for 2021 would now be between $250 million and $350 million, down from a prior range of $325 million and $445 million.
"Production investment expenditure has been revised down to reflect delays in major work programs, including the Kutubu Refinery rebuild, and deferred well planning activities," Oil Search said in a statement.
The firm's operating revenue fell 16% to $301.5 million for three months ended March 31 from a year earlier, hurt by a drop in production at its liquefied natural gas (LNG) project in PNG and a slight decline in average realised price for the fuel. It, however, beat an RBC Capital estimate of $281.1 million.
Oil Search's average realised oil and condensate prices for the March quarter were up about 16%, while realised LNG prices fell about 22% from a year earlier.
Total production for the quarter fell 6.8% to 6.87 million barrels of oil equivalent (mmboe) from a year earlier, narrowly missing the RBC estimate of 7.1 mmboe.