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HIDES

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About: The Hides gas field is a natural gas project located in Papua New Guinea's Southern Highlands Province, 80 kilometres north west of Kutubu. It is majority owned by ExxonMobil with Papua New Guinea based, Oil Search (PNG) Limited, holding a 16.6 percent interest. The Hides gas field was discovered by ExxonMobil in 1987 and began producing natural gas and condensates in 1991 with Oil Search (PNG) Limited as the operator. The field is approximately five kilometres wide and 30 kilometres long with total proven gas reserves within the field totaling 7.1 trillion cubic feet.

Hides gas Field Developed as a Gas to Electricity Project for the Pogera Gold Mine
Hides gas field production was used to develop the Hides gas to electricity project (GTE). This project, that is fully owned and operated by Oil Search (PNG) Limited, comprises a pipeline that connects Hides 1 and Hides 2 wells to a gas conditioning facility within the Hides Production plant in the Tagari River Valley. The gas is used by the Pogera Joint Venture to create electric power for operation of the Porgera gold mine. The condensate produced in the process is distilled into diesel and naphtha which is purchased locally. The diesel is used as a back up fuel for the running of the power station. Gas supplied from the Hides gas field is sold under long term contracts that were last revised in 2012.

Hides gas to be Used in the PNG LNG Project
Hides gas field natural gas is also to be used by ExxonMobil's giant PNG LNG project, that is currently running four months ahead of schedule, which means it wll be beginning the shipping of its first LNG (liquefied natural gas) shipment to its Asian customers by mid-2014. The PNG LNG project will have the advantage of being able to produce a LNG product at lower production costs to the fast growing Asian market, to which it enjoys close proximity.

Natural gas for the PNG LNG project is to be sourced from the Hides, Juha, and Angore gas fields as well as obtaining associated gas from the Gobe Main, Moran, Agogo and Kutubu oil fields. All the fields are located in the Southern Highlands and Western Provinces of Papua New Guinea. The PNG LNG project is operated by Esso Highlands Limited, a subsidiary company of ExxonMobil Corporation. It has been estimated that the PNG LNG operation will produce more than nine trillion cubic feet of gas and around 200 million barrels of associated oils over its lifetime.

Drilling Proves Large gas Resource at Hides gas Field
The drilling program carried out on the Hides gas field in 2012 gave ExxonMobil the confidence to expand its PNG LNG project to three production units from its originally planned two units. In early operations two separate wells located in the northern and southern sections of the Hides gas field were drilled to establish the exact location of the gas and to determine the size of the field. At the same time an evaluation was made as to the potential of obtaining commercial quantities of gas from the deeper sands contained in the Hides structure. This program was successful in evaluating the full extent of the Hides gas field and it also built a resource base that could be used to underwrite ongoing gas development of the field and allow confidence in the expansion of the PNG LNG project.
 


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Following are the resources mined at Hides

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