* Q2 revenue up 38%
* Reaffirms 2021 production, costs forecasts
* Q2 production down ~10%
July 27 (Reuters) - Takeover target Oil Search on
Tuesday reported a 38% jump in quarterly revenue and reaffirmed
its annual production forecast, as rebounding demand for travel
and industrial activity from reopening of economies strengthen
Crude prices have soared more than 50% this year, fueling
optimism about global oil demand returning to its pre-pandemic
levels by next year.
For the quarter ended June 30, Oil Search recorded average
realised oil and condensate prices of $71.55 per barrel, a more
than three-fold jump from a year earlier, while realised LNG
prices were 17.3% higher.
This boosted the Papua New Guinea-focused firm's operating
revenue to $366.2 million, up from $266.2 million a year ago.
Oil Search earlier in the month rejected an A$8.8 billion
($6.50 billion) takeover approach from Santos Ltd,
saying it was inadequate.
Oil Search's shares on Monday closed about 4% above Santos'
offer price of about A$3.80 a share based on the gas producer's
close - indicating investors expect a higher bid.
Oil Search, which is looking to sell a 15% stake in its $3
billion Pikka oil project in Alaska and a stake in the
associated infrastructure, also said it will go ahead with a
final investment decision for the project's first phase only
when it has the right funding capacity in place.
Total production for the quarter came in at 6.59 million
barrels of oil equivalent (mmboe), down from 7.29 mmboe a year
The company maintained its 2021 production forecast of 25.5
mmboe28.5 mmboe and production costs of $10.50 per boe to
$11.50 per boe.
($1 = 1.3545 Australian dollars)
(Reporting by Sameer Manekar in Bengaluru and Sonali Paul in
Melbourne; Editing by Shinjini Ganguli)