BHP oil output falls 22% in first quarter

Resumen de Prensa            Enervía, jueves, 24 abril 2003

FUENTE: Financial Times


BHP Billiton's oil production is declining faster than expected, analysts said on Wednesday, after the world's largest diversified mining group reported that production fell by 22 per cent year-on-year in the first quarter.


However, analysts cautioned against placing too much importance on the decline, saying the 7 per cent fall between the December and March quarters was more indicative of the group's output. The group produced 15.3m barrels in the latest period.

BHP said the decrease was mainly due to natural field degradation in the Bass Strait, between Tasmania and Australia. "Everyone knows the Bass Strait is going to undergo some sort of decline but this is more severe than the market had expected," said a Sydney-based analyst.

Several broking houses said they had "marginally" downgraded their earnings forecasts for the group as a result and BHP shares closed 9 cents lower in Sydney at A$9.36.

However, analysts forecast an increase in oil and petroleum production next year, when new projects are expected to come on-line. BHP aims to produce 100m barrels a year by 2007.

The Melbourne-based company said mineral production was strong in the quarter, with coking coal up 15 per cent in the quarter compared with the same period the previous year, after falling for 12 months.

Copper production was 23 per cent higher and iron ore was up 5 per cent, while natural gas, alumina and aluminium production were in-line with previous quarters.

Santos, the Australian oil and gas producer, said its revenues were 14.5 per cent higher at a record A$369m (US$228m) in the first quarter, compared with a year earlier. "(This) reflected stronger world oil and liquids prices during the quarter, coupled with exceptionally strong gas prices realised in the US," Santos said.

Oil production was steady at 13m barrels in the period, while gas sales volumes rose 5.4 per cent.