Oil Search said the record result, a 42% increase on the first half result last year, was achieved despite the sale of its stake in a number of producing assets to the Australian Gas Light Company during the first quarter.

Total production for the quarter was 2.56 million barrels of oil equivalent, down 7% from the first quarter, while total production for the first half was 5.33MMboe, down 4% from the first half of 2005.

“Production in the second quarter of 2006 was impacted by the sale of oil assets to AGL and two production disruptions, a small fire in pumping equipment at the Agogo Production Facility and weather-related oil loading problems in the Gulf of Papua,” managing director Peter Botten said.

“A scheduled shutdown of the Gobe Production Facility also took place during the period. As a result of these incidents, approximately 380,000 barrels of production, net to Oil Search, and the equivalent of two PNG oil cargoes in liftings, were deferred.”

Oil Search said it anticipated to make up the production deferral in the second half of the year and said it remained on track for annual production of between 11MMboe and 11.5MMboe for the full year.

The average realised oil price for PNG crude during the quarter was $US74.26 per barrel based on total oil sales of 1.86 million barrels. Oil Search remained unhedged during the period.

Profit results are expected to be released on August 22.