SE Mananda
| Location |
Papuan foldbelt, Southern Highlands Province, approximately 10 kilometres north-west of Kutubu
|
| Permit |
PDL-2 |
| Oil Search's interest |
72.26% |
| JV Partners |
AGL (11.90%), Merlin Petroleum Company (7.93%), Petroleum Resources Kutubu Ltd (7.90%) |
| Operator |
Oil Search Limited |
| Original Recoverable 2P Reserves (gross) |
3.5 million barrels |
| Remaining Recoverable 2P Reserves (gross, as at 31 Dec 2007) |
1.7 million barrels |
Development of SE Mananda 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.
Due to weaker than expected production performance, gross recoverable 2P reserves, as audited by Netherland Sewell and Associates, have been downgraded from 5.0 million barrels to 3.4 million barrels as at 31 December 2006, of which 2.6 million barrels are yet to be recovered. However, the development has opened up further exploration opportunities west along the Mananda ridge.
Oil Search's interest in this development, located in PDL-2, is 72.3%.
SE Mananda Bridge
Marketing
SE Mananda crude is similar to Kutubu and Gobe crude and is sold as "Kutubu blend".Recent Performance
Production net to OSH
| mmbbl | 1Q | 2Q | 3Q | 4Q | Year |
| 2006 |
0 |
0.15 |
0.18 |
0.23 |
0.56 |
| 2007 |
0.18 |
0.20 |
0.16 |
0.15 |
0.69 |
| 2008 |
0.11 |
0.11 |
|
|
0.22 |
Last quaterly report
Oil Search’s share of 2008 first quarter production from the SE Mananda field was 0.11 million barrels. This was 26% lower than the fourth quarter of 2007, with gross average daily production rates from the field declining from 2,247 bopd to 1,667 bopd. Production rates were impacted by the scheduled February shutdown of the APF and well issues related to the subsequent start-up.
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