Oil Search has boosted its 2014 production targets after lifting its profit and confirming Papua New Guinea's government will take a major stake in the company.
The oil explorer and producer's key PNG liquefied natural gas (LNG) project is 95 per cent finished and commissioning activities are underway, with first sales expected in the third quarter of 2014.
"2014 will be a transformational year for Oil Search, from both an operational and financial perspective," Managing Director Peter Botten said.
The project is forecast to have a marked impact on the company's total 2014 oil and gas production, which is expected to be roughly double 2013 levels.
The company's new production guidance for 2014 is between 13 million and 16 million barrels of oil or equivalent (mmboe), driven by the PNG LNG project.
It comes a month after the company released a target of between 12 mmboe and 15 mmboe for 2014.
Oil Search's main production operations are located in PNG, where it is also involved in an integrated natural gas and LNG development operated by ExxonMobil.
It has also announced it will undertake a $US900 million capital raising deal, allowing the PNG government to take a 10 per cent stake in the company.
"We were not forced into this," Mr Botten told reporters on Thursday.
"It was a mutual agreement."
Oil Search will use the proceeds to purchase a 23 per cent stake in a joint venture with InterOil and French giant Total SA to develop the Elk and Antelope gas fields in PNG.
Oil Search's 2013 net profit grew by 17 per cent to $US206 million ($A230.44 million).
Mr Botten said the performance was underpinned by solid production from its PNG oil fields, given the slightly softer oil price.
The company is also conducting a strategic review which will analyse the potential value of its assets and define options for investing in growth projects, versus capital management initiatives.
The company declared a four cent dividend, unchanged from the previous year.
Oil Search shares have been halted from trade ahead of its announcement of the purchase of the PNG oil stake, and they will resume trade on Friday.