Muruk discovery in Papua New Guinea sets up prospects along trend

Aug. 28, 2017
A group led by Oil Search Ltd. is maturing four potential multi-trillion cubic foot exploration prospects along the Hides-P'nyang trend in the Papua New Guinea Highlands following the discovery and confirmation of natural gas in Muruk field earlier this year.

Rick Wilkinson
OGJ Correspondent

A group led by Oil Search Ltd. is maturing four potential multi-trillion cubic foot exploration prospects along the Hides-P'nyang trend in the Papua New Guinea Highlands following the discovery and confirmation of natural gas in Muruk field earlier this year.

The four prospects, moving west from Murak, are named Karoma, Na Dia, Blucher, and Koki. Seismic surveys have been completed over Koki and Blucher, while a seismic program will be run over Karoma during this year's fourth quarter.

Oil Search is planning a multi-well program along this trend, subject to seismic interpretations, during 2018 and 2019.

The prospects were revealed during a recent presentation in Sydney of Oil Search's results for this year's first half.

Managing Director Peter Botten said the Muruk-1 discovery along with its two side-track wells found two gas pools, which have potential reserves of 1-3 tcf. The geology is complex, but gas was found in two separate compartments in the structure: a hanging wall and a footwall reservoir.

The Muruk structure is large and an ambitious delineation and appraisal. Murak-2 is to be drilled 10 km northwest of the discovery well during first-quarter 2018.

Also on the appraisal agenda is P'nyang South-2, which will be drilled east of the P'nyang South-1 discovery. The drilling pad is now being prepared and the well is expected to be drilled before yearend. The well offers potential upside to the current 2C reserve figure for the P'nyang complex of 3.5 tcf. Detailed resource certification for the field will take place early next year after the drilling of P'nyang-2.

Other wells to be drilled beginning this year include appraisals of Kimu and Barrikewa gas finds in the Papua New Guinea forelands.

Turning to production, Oil Search said the Papua New Guinea LNG plant near Port Moresby is now operating at 25% above its 6.6 million tonne/year nameplate capacity, proving an additional 1.3 million tpy of LNG from the project. Negotiations are ongoing to place these volumes to buyers on 2-5 year contracts.

The company added that there are now an estimated 10 tcf of 2C discovered undeveloped contingent gas resources in P'nyang and Elk-Antelope fields that are able to support an additional 8 million-tpy expansion at the Port Moresby plant.

At the Elk-Antelope fields, the JV partners-Total SA, ExxonMobil Corp., and Oil Search Ltd.-have now confirmed their intent to pursue a development that is integrated with the Papua New Guinea LNG project.

The companies are now aiming to have an alignment on a commercial model to take to the Papua New Guinea government during this year's fourth quarter.

Discussions are currently centering on integration principles, including capacity and cost-sharing; LNG marketing, equity or joint; and a commercial model for financing. There are also talks about alignment of exploration plans onshore in the Gulf of Papua region and offshore.

The overall cooperative aim is to begin front-end engineering design work for the Papua LNG project during 2018.