ABSTRACT: Discovery And Development Of A Giant Oil Field: Iagifu/Hedinia, Papua New Guinea

HEBBERGER, JOHN, JR., Chevron Overseas Petroleum Inc., San Ramon, CA

Petroleum exploration in Papua New Guinea (PNG) began ca. 1911 with the recognition of oil seeps in the Papuan basin. Subsequent

exploration was largely concentrated in this basin and culminated in the 1986 discovery of the >200MMBO Iagifu/Hedinia field by a Chevron led joint venture.

Chevron's involvement in PNG commenced in 1978 and represents the first concerted effort to explore the southern highlands fold belt. Exploration was based largely on field geology and remote imagery. Because of the ruggedness and remoteness of the fold belt, operations were dependent on helicopter support. The first discovery, a large gas and condensate accumulation on the Juha Anticline, encouraged further exploration in the fold belt, which resulted in the discovery of oil at Iagifu/Hedinia. This discovery is in a complex structural trap, with smaller accumulations found in adjacent structures.

The Kutubu Project, a joint venture between the PNG government and a Chevron-led consortium, was initiated to establish production from Iagifu/Hedinia by mid-1992. At peak production 128,000 BOPD will be exported from a marine terminal in the Gulf of Papua. This $1 billion project is almost entirely air supported. It involves the drilling of 20+ development wells and the construction of a 261 km long pipeline with associated facilities, all in areas without infrastructure, through rainforest-covered, rugged, karsted limestone and swampy lowland terrains.

Exploration continues apace in the Papuan basin with evidence that additional significant hydrocarbon reserves will be found. Since 1990 gas and/or oil discoveries have been made on seven structures; additional structures, although of increasing risk and complexity, remain to be tested from the Irian Jaya border to the Gulf of Papua.

AAPG Search and Discovery Article #91015©1992 AAPG International Conference, Sydney, N.S.W., Australia, August 2-5, 1992 (2009)