By OGJ editors
HOUSTON, May 28 -- Oil Search Ltd., Port Moresby, formed a strategic alliance with Halliburton and its KBR unit for services including oil and gas prospect evaluation, development, and long term field operations support.
Oil Search produced a net 28,352 b/d in 2003 in PNG, where its yearend proved reserves were up 14% to 86.4 million bbl. It owns 70% of the country's oil reserves and over 50% of gas reserves dedicated to the Highlands Gas Project.
Having acquired ChevronTexaco's Papuan operations for $97 million in late 2003, it is targeting $25 million in cost cuts in the next 12 months (OGJ Online, July 22, 2003).
The company is developing its Northwest Moran oil discovery, due on production in late 2004 or early 2005, and formerly uneconomic Southeast Mananda field, due to start producing through Agogo field facilities in mid-2005.
It is also developing and appraising Gobe, Moran, and Kutubu fields, and is seeing significant reserve potential at Kutubu.
Exploration is accelerating, with the 2004 schedule calling for the drilling of Kapul 1 on APPL 240, Iehi 1A on PPL 190, and Arakubi 1 on PDL 2.
Its biggest challenge is commercializing the 12 tcf of gas reserves. Core goal is to move a first gas field development project to front end engineering and design during 2004 to support construction of a gas pipeline to Australia.