Page 76: of Offshore Engineer Magazine (Feb/Mar 2013)

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has shifted exploration further

Gas to the fore Outlook offshore in anticipation of larger oil and gas accumulations. Sections of

Although Papua New Guinea With Maui feld output seeing a fve offshore frontier basins: Great has a strong economy resulting precipitous drop from a peak in 1997

South, Canterbury, Raukumara, from exploitation of its extensive and only partially compensated for

Deepwater Taranaki and Reinga, petroleum deposits and abundance of with production from several other are currently licensed to major other natural resources ranging from offshore Taranaki felds starting to

AustralasiaAustralasia international companies. minerals to forest products, ramp up from 2006, the pressure is The increasing acquisition of the nation is one of the least on to achieve major discoveries. seismic data has prompted frontier developed countries in the Asia Although the bigger discoveries basin exploratory efforts that have

Pacifc region. are gas-condensate, several oil yielded several signifcant, albeit Constrained by the remoteness felds have been discovered. These non-commercial deposits. These of its condensate rich natural gas felds and geochemical research, included two off the east coast of assets, limited domestic needs and indicating similarity to prolifc oil

South Island in the Great South considerable distance to overseas provinces in Southeast Asia, suggest

Basin, where Kawau-1A in 1977 markets, Papua New Guinea is the discovery of large oil felds is fowed 6.8mmcf/d of gas with investing heavily in multiple LNG only a matter of time. estimated reserves of 461bcf and in projects. the Canterbury Basin well Galleon-1 Papua New Guinea-based oil & produced 10mmcf/d of gas and Commercial and sub-commercial gas exploration and development 2300b/d of condensate in 1985. discoveries, abundant potential company Oil Search has been There are multiple sedimentary source rocks, thick Cretaceous- operating in the country since basins with known or potential Cenozoic sediments, and numerous 1929, and has a portfolio including hydrocarbons onshore and hydrocarbon seeps and shows substantial joint-venture holdings in underlying the extensive in exploration wells indicate the Gulf of Papua that could bolster continental shelf of New Zealand, widespread petroleum generation the PNG LNG project or alternatively as well as several deepwater basins and migration.

become another LNG hub.

within its Exclusive Economic Zone Oil Search has contracted the where sovereign rights extend over Block awards

Stena Clyde semisubmersible to more than 5.7 million sq km of The tender in 4Q 2012 involved drill at least two wells in the Gulf of seabed, a region more than 22 times 23 blocks including 40,200sq km

Papua, initially scheduled for late greater than the land area. offshore. Five offshore exploration 2012, but since delayed. permits were awarded, with the The company also has an interest remainder likely to be included in in the Kumul marine terminal located the this year’s block offer. 40km offshore in the Gulf of Papua gnsscience Oil output has varied widely over which receives crude oil via a 265km the past 15 years, rising and falling pipeline from its majority held Kutubu year to year, from approximately oil project, the frst commercial oil 22,000b/d in 1997 to around development in Papua New Guinea.

7000b/d in 2006 and then to around The petroleum industry in Papua 16,500b/d in 2011, primarily from

New Guinea is poised to yield a sharp the Pohokura, Tui and Maari felds – rise in revenue with the PNG LNG

Maui only producing about 1500b/d project and Stanley feld recovery, that year.

both online next year. PNG LNG Gas production in 2011 averaged will also provide a needed lift of 395mmcf/d, mainly from Pohokura, 20,000b/d of condensate to the

Kapuni and Maui, all of it onshore Highlands oil production, consumed domestically. which has declined by 40,000b/d Proved hydrocarbon reserves from a high of 70,000b/d in 2000.

are relatively modest, estimated The future of LNG export and at around 113 million barrels and condensate production in Papua New about 1.2tcf of natural gas in 2011.

Guinea appears bright, likely both Hydrocarbon consumption in alleviating the shortfall in domestic 2011, according to the BP Statistical oil demand that stood at around

Review of World Energy, was 15,000b/d in 2009 and leading 148,000b/d of oil and 377mmcf/d of to an overseas market for liquid gas, each a decline from 2010. hydrocarbons.

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