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Operated PNG Production Overview

Oil Search operates all of PNG’s currently producing oil fields. All these fields are mature, having commenced production in the 1990s. Since taking over operatorship of the PNG oil fields in 2003, Oil Search has drilled 43 development wells on the fields, with a success rate of more than 85%. Between 2011 and 2014, nearly 50 million barrels of oil (gross) have been added to 1P Expected Ultimate Recoveries, while production has remained relatively stable for the past five years.

The strong performance reflects the Company’s continued success in optimising production, through new development wells, workovers and active reservoir management, together with a reduction in facility downtime.

Much of the drilling has focused on the key Kutubu and Moran fields which remain reliable producers, contributing more than 90% of Oil Search’s total oil production in 2014.

As well as oil, the PNG oil fields contain significant gas reserves. Approximately 20% of the total gas feedstock for the PNG LNG Project will be supplied from the Oil Search operated Associated Gas fields (Kutubu, Agogo, Moran and Gobe Main).

Oil Search is also responsible for operating the liquids export system, which handles Oil Search operated oil production and liquids associated with the PNG LNG Project. Work on extending the operating life of key facilities, including the Kumul Marine Terminal and the export line, which were completed as part of the PNG LNG Project development, has increased the reliability of Oil Search’s PNG operations, which is integral to meeting the Company’s PNG LNG obligations.