BG Group, the oil and gas group that is bidding for Australia's Origin Energy, has reported a 67 per cent leap in operating profits in the first half of the year, largely due to higher prices for gas and oil and higher production volumes, particularly of liquefied natural gas (LNG).

BG said that total operating profits for the first half rose to £1.3 billion compared with £793 million in the first half of 2007.

Half-year operating profits for the company's exploration and production arm rose by £727 million to £1.9 billion, reflecting the high price of oil since the beginning of the year, although this was partially offset by a higher exploration charge.

Production volumes have increased in the Buzzard field in the North Sea and the Tapti field in India.

During the second quarter, among its many oil and gas discoveries, BG Group made another find in the Santos Basin, offshore Brazil, where it owns a 30 per cent stake in a concession.

It also found gas in Algeria and in the UK it confirmed the presence of hydrocarbons in a separate structure to the northeast of the Jasmine field, in which BG has a 30.5 per cent stake.

BG's LNG business, which ships gas around the world, saw operating profit increase by £553 million to £762 million. The company is breaking into new markets with its LNG shipping, including the first LNG cargo into Brazil and a 20-year contract to ship LNG into Hong Kong's planned LNG import terminal.

Reflecting rising shipping volumes, the company has commissioned two new-build dual-fuel diesel electric LNG ships, which each have a cargo capacity of 170,000 cubic metres.

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