Oil Search boss vows ‘discipline’ even as crude rallies

  • Feb 22, 2021
  • Brisbane Times

“The company took decisive action to ensure that we limited discretionary spend, enhanced our liquidity, right-sized the organisation and materially reduced our operating cost base and break-even for new and existing projects,” Dr Wulff said.

However, as Brent oil rises back above $US60 a barrel and the company prepares to return to growth with a $US3 billion oil project in Alaska, Dr Wulff said Oil Search would remain focused on ensuring it was able to navigate through periods of uncertainty and “deliver our projects in 2021 and beyond”.

“Whilst we are encouraged by the recovery in the oil price over the last few months, particularly given our strong cash flow and earnings leverage to higher prices, the company remains focused on maintaining discipline in both our capital management and in cost control across our operations,” he said.

Oil Search, like oil and gas giants worldwide, was hit hard by the destructive impact of pandemic lockdowns on the global economy last year, as travel restrictions to arrest the spread of the virus sapped energy demand and sent commodity prices crashing to multi-year lows.