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Moran

Location Southern Highlands Province, 570 kilometres north-west of Port Moresby
Permit The Moran field straddles Petroleum Development Licence-2 (PDL-2), Petroleum Development Licence-5 (PDL-5) and  Petroleum Development Licence-6 (PDL 6)
Oil Search's interest Oil Search owns a 60.05% interest in PDL-2, 40.69% interest in PDL-5 and 71.07% in PDL 6, giving it a 49.51% interest in the Greater Moran Unit.
JV Partners Exxon Mobil, held through Ampolex (PNG Petroleum) Inc, Esso Highlands Limited & Merlin Pacific Oil Company Limited (26.82%), Eda Oil Limited (11.28%), Merlin Petroleum Company (8.31%), Petroleum Resources Kutubu Limited (2.97%) and Petroleum Resources Moran Limited (1.10%) and Petroleum Resources North West Moran Limited (0.02%).
Operator Oil Search (PNG) Limited is the Operator of PDL-2 and the Moran Unit. ExxonMobil (Esso Highlands Limited) is the operator of PDL-5.
Remaining Recoverable 2P Reserves (net, as at 31 Dec 2013) 13.9 million barrels

Project Overview

Moran map

The Greater Moran Oil Project straddles three licence areas, namely PDL 2, PDL 5 and PDL 6 and is located in the Southern Highlands Province, 480 kilometres north-west of Port Moresby.

The first Moran well was drilled in June 1996 and oil was discovered in September 1996 when the Moran 1X well sidetrack, which is located within PDL 2 (the licence area hosting the Kutubu Oil Project) encountered oil-bearing sands. Production commenced from the field in January 1998 by way of an Extended Well Test (EWT) programme, producing oil from the Moran 1X, 2X and 5 wells, all of which are located within PDL 2. An EWT on Moran 4 located in PDL 5 (PPL 138) commenced production in April 2000.

In March 2001, the Central Moran Unit Agreement between the PDL 2 and PDL 5 Joint Venture partners was executed, and full field development of the Central Moran Project was completed in September 2002.

The Central Moran Oil Field was developed as a single Unit with ownership of the Unit in the proportion of 45% by PDL 2 and 55% by PDL 5. The Central Moran Project was designed and installed based on:

  • Oil production capacity of up to 24,000 bopd;
  • Gas injection capacity of up to 105 mmscfd; and
  • Oil recovery by injection of Moran solution gas supplemented by Agogo gas to maintain reservoir pressure.

Moran production is processed at the Agogo Production Facility (APF) and liquids are then piped to the Central Production Facility for further processing, storage and export through the export pipeline. The Moran PDL-5 participants pay a tariff to the PDL-2 and PL-2 partners for processing and transporting crude through the Kutubu system.

In late 2003, NW Moran, an extension of the Moran field towards the north west, into PPL 219, was discovered. In September 2005, an Extended Production Test (EPT) of the NW Moran 1 well commenced, following the construction of a 23 kilometre pipeline linking NW Moran into the APF. This, together with infrastructure debottlenecking, additional infill wells and success in re-pressurising the Moran reservoir due to improved facilities reliability, has resulted in an increase in production rates in recent years.

In late 2006, the PDL 2, PDL 5 and PPL 219 (now PDL 6) joint venture partners agreed to establish a single Greater Moran Unit across the Moran and NW Moran fields. The unitisation split is 55:44:1 to PDL 5, PDL 2 and PDL 6 respectively, giving Oil Search a 49.51% interest in the Unit. A Production Development Licence over the NW Moran field, PDL 6, was awarded in 2008. 

Oil reserves

As at 31 December 2013, Oil Search's share of remaining recoverable 2P reserves at Moran was 13.9 million barrels. The reserves are contained within generally high permeability oil rims in the Toro and Digimu sandstones.

Marketing

Moran crude is similar to Gobe and Kutubu crude and is sold as “Kutubu Blend”.

Recent performance

Production net to Oil Search

mmbbl 1Q 2Q 3Q 4Q Year
2013 0.47  0.52  0.55 0.50  2.04 
2012 0.42  0.55  0.36  0.54 1.87
2011 0.63  0.62  0.49  0.54 2.29
2010 0.69 0.65  0.65  0.63 2.62
2009 0.65 0.48 0.66 0.74 2.53
2008 0.85 0.81 0.80 0.73 3.18