After the field first came on-stream in late February at 75,000 bopd, average production for the month of March dropped to 66,000 bopd, with rates further reducing to 53,000 bopd in April.

Production between May 1 and 10 has averaged 45,000 bopd, the company said.

The field was supposed to ramp up during these months and reach peak production in April.

The Perth-based company blamed the lower production rates on minimal contribution from the two oil producing wells in the northern part of the field, in addition to gas and water management issues.

“The failure last week of a gas compressor onboard the FPSO, Berge Helene, will further delay the commissioning of gas re-injection to the Banda field and therefore resolution of facilities gas handling issues, as well as the availability of gas lift to support production,” Hardman managing director Simon Potter told the ASX this morning.

He said the operator Woodside Petroleum did not expect production to increase until either a well intervention or additional drilling had taken place.

These remedial actions are currently expected to occur by end of the third quarter or beginning of the fourth quarter.

Potter added that optimally configured wells or sidetracks could add a potential 10,000 bopd in the southern part of the field, and 5000-10,000 bopd in the northern part.

“Plans for even earlier intervention, including sourcing additional completion equipment, are currently being evaluated though it would have the effect of delaying the commencement of the 2006 Mauritanian exploration campaign,” he said.

The drop in production has not affected estimates of oil in-place or ultimate recoverable reserves of 123 million bbl of oil, Potter said. He did concede, however, that additional investment may be required to access those reserves.

“Anticipated operating cash flows from Mauritania will remain robust given high current oil price realisations despite the lower production from Chinguetti,” Potter said.