Papuan foldbelt, Southern Highlands Province, approximately 10 kilometres north-west of Kutubu
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, have for the first time come together in a cooperative manner to facilitate the development. The development has opened up further exploration opportunities west along the Mananda ridge.
As at 31 December 2009, the SE Mananda Project had produced a total of 2.5 million barrels and the gross proved plus probably ultimate recovery was estimated at 3.5 million barrels of which 1.0 million barrels are yet to be recovered.
SE Mananda crude is similar to Kutubu and Gobe crude and is sold as "Kutubu blend".
Oil Search’s share of 2010 first quarter production from the SE Mananda field was 0.03 mmbbls, slightly higher than fourth quarter 2009 production levels. Gross average daily production rates from the field were 455 bopd, compared to 436 bopd in the fourth quarter.
Hydrate issues seen in the last quarter have been successfully resolved.