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".
During first quarter 2013, production recommenced following repairs to the main production flowline at the end of 2012. While initial attempts to bring the field back on-line were impacted by power supply and surface instrumentation difficulties, the SEM 4 well was successfully brought on-line in March. The SEM 3 well remains shut-in due to a tubing restriction.