Liquefied Natural Gas (LNG)

Speaking to Loop PNG, gas Projects Coordination Office director, Peter Koim, said the gas potential in PNG was huge.

“Oil would be very minimal unless we find a very huge oil reserve somewhere then the export of oil from Papua New Guinea will continue,” Koim said.

“But I think the oil fields in Kutubu and Gobe, and this place in Moran, are declining so within the next five to 10 years we might see Papua New Guinea moving away from oil and focusing on LNG exports.”

Speaking during the company’s 2017 Annual General Meeting recently, Botten revealed how LNG production is expected to increase.

These, he says follows the announcement of increases in OSH’s PNG LNG Project reserves last year with ‘Proved (1P)’  reserves up by 50 per cent while ‘Proved plus Probable (2P)’ reserves increased by 12 per cent.

So far in quarter one of 2017 a production of 8.3 metric tonnes per annum (MTPA), which is 20% above nameplate, was recorded.

Meanwhile, oil production is expected to drop this year according to the CEO.

Speaking at the Inaugural PNG Petroleum and Energy Summit, Oil Search Managing Director, Peter Botten, says the joint venture partners should be looking at cost synergies and optimising spending through reduced wasteful duplication of infrastructure.

He said this will offer the best capital and operational expenditure savings.