Nothing like Africa

WHILE the security risks to PNG LNG project sites are no doubt real, the impression on the ground can sometimes paint a different picture. By energy and resource correspondent Tony Morley  Moro air base deep in the Southern Highlands is the jumping off point and one of the largest staging areas for remote exploration in the region. Civilian passengers and oil field crew disembark and pack into the small terminal, air crew unload luggage for inspection by security staff. It’s still raining as I clear security. It’s the sort of rain that could inspire you to build a large boat and round up local animals. I make the frantic dash through the busy staging area and into the camp office. The increased traffic, of people and equipment, has made Moro an unexpectedly busy airport for its size. As I unload my gear and receive a brief but detailed induction I’m looking forward to getting checked in and some dinner and rest. The change at the Moro base in the last ten years has been dramatic. Expats from all over the world dine alongside national drivers and drilling crew freshly off their shifts and coming in from the rain. As with all large camps the food is plentiful and there is no shortage of choice, everything from steak and leafy greens to real ice cream produced on demand. It’s highly unlikely you will go hungry in Moro. It’s not uncommon to read and hear a vast number of accounts on the instability and dangers of the Southern Highlands. However, to a large degree that’s not the case anymore. There is no air of impending doom, no fear of your project being overrun. I expected something different on my flight in, I expected something like Africa, but the Highlands are nothing like Africa. It would appear the people here are mostly in a cooperative mood to the vast array of new resource projects operating in the region. The gas potential of PNG is an ever-growing target and with relatively new and major gas fields under development and continued exploration, the country’s reserves are set to climb. Three of the primary gas fields are the Hides, Juha and the Angore fields, and with further reservoir imaging and developments in extraction and processing, the PNG LNG joint venture will seek to make the most of its reservoirs. In 2010 PNG was listed as 44th out of the top 100 countries for proven gas reserves, holding 0.12% of total proven world reserves. It’s not beyond reason to see PNG further up the list in the years to come as exploration continues. PNG has likely seen only the tip of the available resources hidden deep within its mountainous jungles. As commercialisation opportunities widen, massive infrastructure changes are required to enable and sustain this up and coming development. I awaken early and catch a helicopter out of the Moro base and for over twenty minutes I fly over pristine jungle dotted with waterfalls and outcroppings of limestone. As we fly across the vast expanse of green, our chopper threads a path between the low lying clouds. Looking down and seeing small helipads and production sites is sometimes the only hint of what is stored deep below the limestone caps. The infrastructure is changing, growing and becoming more reliable. Roads washed out in the Southern Highlands must be maintained or rebuilt and ExxonMobil is sinking millions into bridge development in key locations. We land in Tari and have the chance to examine Exxon’s latest bridge project nearing completion. The new bridge, located just outside Tari, is a wonder compared with its predecessor. Built to last, the modular steel and concrete construction won’t be rusting away any time soon. The load capabilities ensure the bridge will be able to handle nearly any crossing challenge put before it. It’s a common theme across the Highlands; the demand for stable and reliable infrastructure is fuelling investment from the private sector. The benefits will have a lasting impression as the changes are likely to have a trickle down effect. Improving road networks and communications certainly has a positive effect on the people of the area. The Tari area is also home to the newly developed Trapia well site, 13km east of the Angore gas field and 23km east of the Hides gas field. This newly developed well pad is benefiting from the area’s favourable geology and positive community relations. The JV between Esso Highlands and Oil Search and others is shaping up to be a jewel in the crown of the Southern Highlands. Landing in Trapia and looking around at the throngs of dense cloud and fresh mist, it’s indeed a peaceful place. The locals in the area have taken a bit of a shine to the well site and there stands a recently planted garden just outside the well site gate. A woman collects freshly grown vegetables as we pass through the gardens and look over the newly operational saw mill. The man running the mill displays the equipment off with pride, the drilling helmet upon his head sporting the Oil Search logo and the sticker of the Canadian flag affixed to the side. Everywhere you look there’s an air of hurried excitement, a sense of anticipation and the people, expats and nationals alike are cheerfully expectant about the newly spudded well. The helicopter that will collect us from Trapia picks a discerning path through the clouds and lands on one of the designated pads. Our equipment, baggage and parts as well as mail are loaded and crew members leaving for time off climb on board. “We’re always trying to make the best use of space, and squeeze the most efficiency out of our trips,” the pilot tells me over the headset as we take off. Looking down watching Trapia grow smaller as we head back for Moro air base, it’s relieving to be clearing the site before the weather closes in. It’s not the first time this region of favourable anticlines has yielded a star well and it surely won’t be the last. Oil and gas developers are pouring record breaking amounts of investment into the country, clearly displaying their faith in the booming resource industry. Industry leaders are looking forward to a stable and productive political system following the recent election. As resource exploration and development around the country gears up and new projects come online, PNG is poised to make excellent use of is natural endowment. PNG Industry News