PETROLEUM IN PNG
Highlights of the Petroleum Sector
There has been a marked increase in the number of Petroleum Prospecting Licenses (PPL) issued in recent years and currently there are 40 PPLs blanketing most of Papuan and North New Guinea Basins.
Exploration drilling has increased commensurably with this growth and has already produced some notable successes including the gas/condensation discoveries at the Douglas well in the Western Province and Elk well in the Gulf Province.
Exploration expenditure is expected to top US$100 million per annum in the near future.
There will be a significant increase in the number of Foreland exploration wells drilled in the next few years.
Aggressive drilling will continue in the Fold Belt proper to prove up further oil reserves and to further appraise known gas resources.
PNG Oil Production has stabilised around 30,000bopd with input from the SE Mananda and NW Moran fields.
Gas output from Hides average 14-15mmscf per day which is utilised for power generation for the Porgera mine.
Gas commercialisation is the current driving force in the PNG petroleum sector and there are three separate LNG proposals being mooted.
Other gas commercialisation projects under consideration include Dimethylether (DME), methanol and urea/fertilisers.
It is envisaged that this downstream industries would be developed in the Konebada Petroleum Park to be established on the west side of the Port Moresby Harbour, adjacent to InterOil’s oil refinery or at suitable locations on the west coast of Port Moresby. Any development would be based on a gas pipeline sourcing gas from the existing producing fields or from stranded gas fields in the Foreland.
Mining and Petroleum Sector update 2006
Petroleum Production, 2003-2006