The government of Papua New Guinea has given final approval to BP Petroleum Development Ltd. to begin its Hides gas development project in the Southern Highlands.
Hides, the first commercial hydrocarbons development in Papua New Guinea, will deliver as much as 15 MMcfd from two wells to a 60,000 kw power plant that will provide electricity during the 19 year life of the new Porgera gold mine.
Hides will be followed by development of Iagifu-Hedinia oil fields, also in the Southern Highlands. The fields, known collectively as Kutubu, are operated by Chevron Nuigini. They could be on production by 1992.
BP will lay a 5.1 mile, 4 in. pipeline from the two Hides wells down the steep sides of Mount Tumbudu to a gas processing plant in the Hanimu-Tagari Valley. The project will include condensate storage and truck loading facilities.
First gas is scheduled for delivery to the new power plant late in 1991. Electricity will be transmitted to the gold mine by 43 miles of overhead power lines. The gas processing plant will have two 15 MMcfd trains to provide 100% spare capacity over the contractual requirements of the power station.
Stabilized condensate will be used at the processing plant, in the power station, or trucked to other users in Papua New Guinea. BP will build a 3 mile access road to the plant site, 420 miles northwest of Port Moresby.
BP, a major product marketer in Papua New Guinea, also is assessing further processing of the condensate to produce small volumes of diesel oil.
The project will cost about $20 million, but that sum is dwarfed by the $80 million BP has spent for exploration in Papua New Guinea since 1919. Hides is its first commercial discovery. BP owns a 95% interest in the project. Its partner is Oil Search Ltd.
The field was found in 1987, followed by lengthy negotiations with the government that led to the commercial stage of the project.
Copyright 1990 Oil & Gas Journal. All Rights Reserved.
