The SE Mananda field, located in PDL 2, was discovered in 1991. While the field was very close to the Kutubu facilities, it is on the other side of a very deep gorge and consequently, for a number of years, was deemed to be uncommercial.
Following the PNG Government’s introduction of a marginal field tax regime to encourage the development of smaller oil fields, and the transfer of Operatorship, Oil Search commenced detailed technical and engineering studies on the SE Mananda field during 2003. This work confirmed that the field was economic based on a low cost development and incorporating an appropriate fiscal regime. A development plan was sanctioned in 2004 and the fiscal and regulatory framework agreed with the PNG Government in early 2005. The SE Mananda development came on-stream in early 2006.
There were significant challenges associated with the development, including very difficult terrain and the need to span the 470 metre wide, 400 metre deep Hegigio Gorge. The latter resulted in the design and construction of the world's longest pipeline suspension bridge. In addition, the SE Mananda landowners are made up of three separate ethnic groups, which under Oil Search, for the first time came together in a cooperative manner. The infrastructure will facilitate further development opportunities along the Mananda ridge, including the potential development of the recent Mananda 5 discovery.
SE Mananda Bridge
As at 31 December 2012, Oil Search's share of remaining recoverable 2P reserves in SE Mananda was 0.3 million barrels.
SE Mananda crude is similar to Kutubu and Gobe crude and is sold as "Kutubu blend".
Oil Search’s share of SE Mananda production in the second quarter was 9,000 barrels. The field produced at a gross average rate of 131 bopd compared to 23 bopd in the first quarter. The increase reflected sustained production from the SEM 4 well, which had been shut-in for much of the first quarter.