Mine Details
Se mananda
http://www.oilsearch.com
crude-oil, Camp, FiFo
Phone:
Address:
Cuthberton Street, Port Moresby, PNG,
State: Cuthberton Street, Port Moresby, PNG,
Email:
The South East Mananda oil field in the Southern Highlands Province of Papua New Guinea was discovered in 1991. It was subsequently developed to produce 10,000 barrels of crude oil a day. However, ever since it came on production in 2006 it has always remained a marginal oil field as far as profit making was concerned. Production problems at the SE Mananda oil field included water cut and hydrates issues as well as a high gas to oil ratio. The high level of operating costs at the field caused it to reach its economic limit earlier than previously expected.
SE Mananda May Progress Into Mananda 7
Despite the SE Mananda oil field not promising a future of good oil production because of increasing operating costs and poor production performances, it has survived, and so far avoided abandonment. In fact, on February 20, 2014, it was announced Mananda 7 was showing promise of turning its fortunes around as ongoing exploratory drilling targeting the south east extension of the earlier Mananda 6 discovery was showing promise. Past drilling of Mananda 7 had achieved its objectives and the latest drilling to the south east of Mananda 6 is targeting the crest of Digimu and Toro sandstone structures that is believed to be an optimal production location. The joint venture partners in Mananda 7 include; Oil Search (PNG) Limited with 71.25 percent, Nippon Oil Exploration (Niugini) Limited with 20 percent and Merlin Petroleum Company with 8.75 percent.
The SE Mananda oil field is located in the Southern Highlands Papuan foldbelt about 10 kilometres north west of the Kutubu oil field. This field as distinct from the Mananda 7 find, is majority owned by Oil Search (PNG) Limited with a 72.26 percent shareholding, Merlin Petroleum Company with 19.84 percent and Petroleum Resources Kutubu Limited with 7.90 percent. Oil Search is the project operator.
Hegigio Gorge Separates SE Mananda oil Field From the Kutubu oil Field
Although the SE Mananda oil field is extremely close to the Kutubu facilities is is actually situated on the opposite side of a very deep gorge. This geographical inconvenience deemed the development of the SE Mananda field an uncommercial proposition to develop for many years. However, after the Government of Papua New Guinea legislated a new marginal field tax regime in order to encourage the development of small oil fields, along with the transfer of ownership, Oil Search (PNG) Limited, in 2003, began engineering and technical studies on the feasibility of developong the SE Mananda field in its own right. The study gave Oil Search the confidence to go ahead with low cost development. The plan was sanctioned in 2004 and the Papua New Guinea Government gave its approval in the first half of 2005. The SE Mananda field began producing crude oil in 2006.
In order to get the SE Mananda project off the ground the development faced many challenges owing to the difficult terrain, not to mention the spanning of the 470 metre wide and 400 metre deep Hegigio Gorge. To overcome this difficulty the developer had to construct the longest suspension bridge pipeline in the world. An added obstacle that had to be managed, that is unique to Papua New Guinea, is that the landowners of the lease area represented three separate ethnic groups. It was the first time these people had been brought together in such a co-operative manner. Now the infrastructure has been put in place it will assist other development opportunities along the Mananda ridge.
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