Papua New Guinea''s biggest oil producer, Oil Search Ltd today hinted on the possible sale of some of its assets in the Middle East and Africa.

The company wants to use the revenue generated to improve its ability to finance liquefied natural gas projects. Speaking via a conference call, Managing Director Peter Botten said that the company was facing challenges in financing its $10 billion LNG project in Papua New Guinea as reported on AAP and by Bloomberg.

Oil Search owns about 30% of the LNG project that is headed by Exxon Mobil Corp led venture. The venture is expected to decide on the engineering and design work of the project next month to start engineering and design work on a $10 billion LNG project that would almost triple the company''s output. Oil Search gained 2.3%.

Resource Pacific accepts Xstrata''s offer

Australian coal producer Resource Pacific Ltd today indicated that it has agreed to Xstrata Plc''s $1.08 billion takeover offer after Xstrata garnered more than 50% share.

Resource Pacific''s acceptance of Xstrata''s $3.20 a share bid finally ended four months of jostling for the mid-size coal producer.

Resource Pacific runs the Newpac colliery, which neighbours Xstrata mines in the Hunter Valley region of New South Wales State. It produces about 4 million tons of coking and thermal coal a year and has plans to double output by 2010.

OneSteel registers a profit

Australia''s second-largest alloy producer, OneSteel Ltd today announced a net operating profit after tax of $104.4 million in the six months to December 2007, up 6.3% from the $98.2 million profit of the corresponding period last year.

OneSteel Limited Managing Director and Chief Executive Officer, Geoff Plummer said the profit excluded restructuring costs and impairment of plant and equipment.

The net statutory profit after tax, after restructuring costs, and impairment of plant and equipment associated with the Smorgon Steel integration, was $74.6 million.

Geoff Plummer said, ""Highlights of the six months were the significant progress on OneSteel''s two major growth initiatives of Project Magnet and the merger and integration of the Smorgon Steel businesses.

He said the company was on track to ramp up to 4 million tons of external iron ore sales in this financial year after sales of almost 1.9 million tons in the period under review. The most recent estimate of the cost of the project will be approximately $400 million, compared with the previous forecast of $395 million.

He added that the merger with Smorgon Steel Group that was completed on 20 August and the integration of the businesses was on target. OneSteel''s share fell 2.5%.