While having been an active explorer in PNG since the 1920s, Oil Search assumed operatorship of the Hides Gas-to-Electricity (GTE) Project in 1998 and all of PNG's producing oil fields in 2003. Since then, we have successfully mitigated the rate of decline from these mature fields, optimised production through development drilling, workovers, active reservoir management and reduced facility downtime. This has generated significant returns for our partners, communities and governments, with further value-accretive opportunities within the oil fields identified.
In 2014, the world class PNG LNG Project (operated by ExxonMobil) commenced production, quadrupling our production base and transforming Oil Search into a regionally significant oil and gas producer with a long-term, low cost, high quality LNG revenue stream.
Approximately 20 per cent of the total gas feedstock for the PNG LNG Project is supplied from our associated gas fields. In addition, we are responsible for operating the liquids export system which handles our oil production and liquids associated with the LNG Project. The strong performance of the Project, which has consistently produced well above the original design capacity, exports to key Asian customers under contracted and spot market sales and has put PNG on the map as a reliable, high quality supplier of LNG.
Together with ExxonMobil and Total, Oil Search is progressing LNG expansion opportunities through commercialisation of the Elk-Antelope (Papua LNG) and P'nyang gas fields. In 2018, alignment was reached on the preferred downstream development concept, including construction of three new LNG trains, which will nearly double installed LNG capacity in PNG. The proposed development, underpinned by 11 TCF of undeveloped 2C gas resources, is one of the most cost-competitive projects globally.
Oil Search's vast exploration portfolio covers some of the most prospective areas in PNG - the Eastern Foldbelt, North West Highlands and Onshore Gulf regions. Oil Search's exploration strategy is to prioritise activities that create the most value. As such, we are targeting, at the appropriate time, gas opportunities which have the potential to add material backfill gas for existing LNG facilities and those that strengthen LNG expansion economics or can underpin additional LNG trains.