Oil output to rise in ’14

Business, Normal

The National, Tuesday February 25th, 2014

 THE long-term downward trend in PNG’s oil production will be reversed this year as a result of output from PNG liquefied natural gas (LNG) project, Oil Search managing director Peter Botten (pictured) said. 

In the December quarterly report of PNG Chamber of Mines and Petroleum Newsletter., Botten stresssed that due to LNG project and strong operating performance from current oilfields, projected oil production this year has been raised from previous estimate of 10 million to 13 million barrels of oil equivalent to 12-15 million barrel of oil equivalent (boe).

This contrasted with a more conservative PNG Treasury projection of total oil and condensate export of 8.2 million barrels this year, rising to 15.6 million barrels next year.

He said in Oil Search share of oil production and gas-to-electricity at Hides last year amounted to 6.74 million boe compared with a current forecast of 6.3-6.8 million boe this year, with an additional 1.3-1.8 million boe of condensate coming from the LNG project. 

Botten said gas from Kutubu had been introduced to Hides gas conditioning plant (HGCP) following the start of commissioning activities at LNG plant in the third quarter of last year.

Other milestones reached by LNG project include :

  • Welding of main gas pipeline connecting HGCP to offshore pipeline completed in December quarter; 
  • The condensate line linking Kutubu to HGCP finished and temporarily used to supply commissioning gas from Kutubu to HGCP. 

Once LNG production began, pipeline will carry condensate to Kumul oil export terminal in Gulf of Papua;

  • Installation of pipeline gathering system linking Hides production wells to HGCP is making good progress. 

Drilling of fourth Hides production well was completed during last quarter; and

  • Scoping studies continuing on P’nyang field to submit a development licence application early next year. 

New seismic is being shot over P’nyang and Juha fields. 

Meanwhile, the  petroleum development licence application for Mananda 5 and 6 has been submitted to the Petroleum Department with hopes that the current Manada 7 drill hole would be incorporated into licence if it was successful.