Oil Search is considering cutting its oil production in Papua New Guinea from July.
The company's managing director, Keiran Wulff, told the Macquarie Australia Conference that weak prices, soft demand, and a full inventory were prompting it.
Mr Wulff said the company is in talks with the PNG government about potentially cutting its oil output.
"We will make a decision shortly as to whether or not we will continue with our marketing or whether we will shut in our crude for a short period of time. Some of those discussions obviously need approvals," Keiran Wulff told the conference.
Last year Oil Search produced 1-point-57 barrels of oil in Papua New Guinea.