Oil Search's 2007 net profit falls 32 percent

SYDNEY, Feb 19 (Reuters) - Australian listed Papua New Guinea (PNG) oil and gas producer Oil Search Ltd. (OSH.AX: Quote, Profile, Research), on Tuesday reported a 32 percent fall in 2007 profit due to higher exploration costs and tax rates, but beat analysts' forecasts.

The Port-Moresby-based company said net profit before one-offs was $140.8 million, compared with $207.5 million a year earlier.

Ten analysts had on average forecast Oil Search's net profit before one-offs to be $122.45 million, according to Reuters Estimates.

Oil Search declared a final dividend of 4 U.S. cents a share and forecast 2008 production to be between 9-9.5 million barrels of oil equivalent.

Oil Search, a partner in an Exxon Mobil (XOM.N: Quote, Profile, Research) proposed liquefied natural gas project in Papua New Guinea, in January recorded an annual production of 9.78 million barrels of oil equivalent, down 4 percent from a year ago.

Shares in Oil Search, which hit a record high of A$5.10 in January on soaring oil prices, have fallen about 13 percent so far this year to Monday's closing price of A$4.28 partly due to its exploration failures in Egypt. (Reporting by Fayen Wong)