Houston-based independent Newfield Exploration Co. on Tuesday cut its full-year 2006 production estimate because of crude oil marketing issues in the Rocky Mountains, production downtime offshore Malaysia and continued production deferrals in the Gulf of Mexico (GOM). Expected oil and natural gas output this year will total 242-244 Bcfe; its previous estimate was 250 Bcfe.

About 2 Bcfe of the production shortfall in the second half of 2006 follows continued delays in work programs in the GOM. Newfield said 20 MMcfe/d net remains offline because of hurricane damage. In addition, ongoing equipment and manpower delays from service companies are impacting the start-up of several significant new developments. However, all of them are expected to be ramped up by the end of this year.

CEO David Trice said 2006 was a “very challenging year for us, and our production estimates now reflect the deferral of about 16 Bcfe. These include nearly 4 Bcfe related to service provider delays of our Grove Field start-up in the North Sea, 3 Bcfe in the Rockies related to refining and marketing issues, 3 Bcfe related to delays in first production from our Wrigley Field in the deepwater Gulf and more than 6 Bcfe of deferrals related to last year’s storms in the Gulf of Mexico. We believe that these issues are largely behind us and that we will meet our fourth quarter 2006 and full-year 2007 production estimates.”

Newfield’s production for 3Q2006 was 62.6 Bcfe, in line with previous estimates. The producer said its significant growth projects remain on track for 2007. Adjusting for the recent sale of a 15% interest in the North Sea, production for 2007 is expected to range between 295- 320 Bcfe — an increase of more than 20% over this year. The North Sea output, the deepwater Wrigley Field in the GOM and the Abu Field development offshore Malaysia are estimated to account for nearly half of the total production growth next year.

A complete update on all of Newfield’s projects will be provided in its 3Q2006 conference call, which is scheduled for Oct. 26.

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