We operate all PNG’s currently producing oil fields, which commenced production in the 1990s. Our production assets have low operating costs and sustaining capital requirements and generate positive cash flows even at lower oil prices.
We continue to have strong operating performance, with success in optimising production through new development wells, workovers and active reservoir management, together with a reduction in facility downtime.
The PNG oil fields contain significant gas reserves. Approximately 20 per cent of the total gas feedstock for the PNG LNG Project is supplied from our Associated Gas fields:
- Gobe Main
We are also responsible for operating the liquids export system, which handles our operated oil production and liquids associated with the PNG LNG Project. Work on extending the operating life of key facilities, including the Kumul Marine Terminal and the export line, which were completed as part of the PNG LNG Project development, has increased the reliability of our PNG operations, which is integral to meeting the Company’s PNG LNG obligations. Since taking over operatorship of these mature fields in 2003, we have been successful in mitigating the production decline rate and adding to reserves through an active development drilling programme.