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PNG crude oil reserve at 2.53 billion barrels

Papua New Guinea's proven crude oil reserves are estimated at 2.53 million barrels, placing it at 99 out of 103 countries with proven reserves.

This is according to the PNG Extractive Industries Transparency Initiative Report 2014.

Latest figures recently made available this year to the local media, by Oil Search managing director Peter Botten, indicate around seven billion barrels of untapped oil reserves.

According to Botten, what have been tapped into formed 40 percent of the entire crude oil volume.
Ninety percent of the untapped crude oil reserves are gas.

Kumul Petroleum Holdings Ltd (KPHL) managing director Wapu Sonk said extractive companies operating in the country have only discovered close to 30TCF (trillion cubic feet) of gas, but there was more to be found, especially offshore of PNG, which has huge potential and is yet to be tested.

“Oil exploration in PNG commenced in the 1920s and the first commercial production began in 1992, and there are currently five principal oil fields.”

Oil production has been in a slow but steady decline since the mid-1990s,” the report said.

“A range of national and multinational oil and gas companies are actively engaged in exploration and production in PNG, with a number of new projects in planning and development stages.”

“Gas production at scale is just starting, with the PNG LNG project shipping its first liquefied natural gas (LNG) in May 2014.”

Head of PNGEITI National Secretariat Lucas Alkan said: “Apparently, the figures from 2014 report and the ones provided by Oil Search and Kumul Petroleum Holdings vary significantly, with the latest figures painting a different picture of how PNG’s investment in the petroleum industry will look like.”

“We consider this to be frank discussion by leaders in the oil and gas sector on the volume of petroleum reserves.”

“This goes to show that the companies are investing with the true spirit of transparency and accountability, and this is what EITI is all about.”

“We appreciate this, and we hope to continue the good working relationship through the industry participation in our vibrant Multi-Stakeholder Group (MSG) in the EITI reporting,” he added.

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