Oil Search is planning capital spending cuts as plummeting oil prices hit the value of its assets.
The energy giant made the announcement only hours after crude oil prices fell to a six-year low, sparking fresh fears of a global supply glut.
The oil and gas explorer has blamed the sharp drop in oil prices since late 2014 for its intention to reduce capital expenditure this year.
Reduced cash flows are also expected to see impairment charges of up to $US200 million ($A252.37 million) in 2014, which has been linked mainly to lower carrying values of exploration licences in Papua New Guinea, the Middle East and North Africa.
Crude oil prices fell by 40 per cent during the December quarter of last year, and hit a six-year low of $US44.45 a barrel on Wednesday night.
But Oil Search insists it is "very well placed to manage the current low oil price environment", thanks mainly its stake in a massive PNG liquefied natural gas project.
The company's overall production during the December quarter rose by 8.5 per cent to 7.24 million barrels of oil equivalent while revenue increased by 4.4 per cent to $US562.1 million ($A709.27 million).
Oil Search completed a strategic review in October but is reviewing its conclusions in the wake of the unexpected tumble in oil prices.
"At this stage, we do not anticipate any changes to the core strategic direction of the company," it said in a statement.
Oil Search shares fell nine cents, or 1.2 per cent, to $7.70.
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