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Oil Search managing director Peter Botten said payment would consist of $US52.7 million in cash and $US21.1 million in shares in DRD.
"While we have been delighted with the performance of the Porgera mine, following Oil Search's major strategic review in 2002, the board decided to concentrate on its core business of oil and gas exploration and production by divesting its mineral assets," said Botten.
"Funds received from this sale will materially offset the acquisition cost of the Chevron Niugini oil assets, which is due for completion in October."
Following completion of the Porgera sale and the Chevron Niugini acquisition, Oil Search's gearing level will be a modest 16%.
"This strong balance sheet will enhance the company's ability to pursue value adding opportunities in Oil Search's core oil and gas business and in capital management activities," Botten said.
