Australian-listed Papua New Guinea oil and gas producer Oil Search Ltd, posted a 53 per cent rise in first-half profit on record production and a soaring oil price but noted pressure from increasing costs.

Oil Search expected 2005 production to be at the top end of its forecast range of 11.5 to 12.0 million barrels of oil equivalent (boe), following strong first-half production of 5.54 million barrels boe.
“Buoyant production could not have been achieved at a better time, with oil prices continuing to rise,” managing director Peter Botten said.
The company is forecasting 2006 production in a range of 12.5 to 13.5 million boe.
Oil Search made a net profit $63.9 million, up from $41.7 million a year ago.
In early July, the company said the $3.5 billion gas pipeline between PNG and Australia was a step closer after reaching gas sales agreements with the Australia Gas Light Co and Alcan Inc.
“The two new conditional contracts with AGL and Alcan at Gove which, when converted into firm commitments, will significantly underwrite the volumes necessary to sanction the project,” Botten said.
Final approval for the 3,200-km pipeline under the Coral Sea is expected in the first quarter of 2006, after a number of regulatory approvals are granted.
The project operated by ExxonMobil has struggled for seven years to secure adequate sales to underpin its development.