On the back of increased oil production and a change in operating structure for its PNG assets the company reported a net profit of $57.14 million for the period to June 30, up from $28.02 million for the same period last year. Similarly revenue rose to $244.36 million from $164.68 million.

Overall production for the year is expected to reach 9 million barrels of oil, up from 7.8 million last year, with expected growth to 11 million barrels next year.

The company took the crucial strategic steps of taking on operatorship of its PNG assets and increasing its exploration program to around $70.44 million for the year.

Control of the Kutubu, Moran and Gobe oil and gas operations was acquired through a $149.79 million deal to purchase ChevronTexaco's share in the fields as well as its other PNG assets.

Managing director Peter Botten said production decline at the Kutubu and Gobe had been partially arrested while Moran production will ramp up with the Moran-9 site being brought into production.

Exploration drilling will start at the adjacent Moran-10 site in the first half of next year.

Negotiations are also close to completion for the sale of the company's minerals assets, including its 20% stake in the Placer Dome-managed Porgera gold mine, for which Oil Search has called international tenders.

The company could receive more than $80 million for its PNG goldmining interests acquired in the group's takeover of Orogen, which had as its main aim Orogen's PNG oil and gas interests.