Esso Highlands Limited > PNG Gas Project Environmental Impact Statement Executive Summary December 2005 CR 790_20_Rev4 Prepared by: Enesar Consulting Pty Ltd 124 Camberwell Road Hawthorn East Victoria Australia 3123 p 61-3-9882 3555 f 61-3-9882 3533 e [email protected] www enesar.com.au PNG Gas Project Environmental Impact Statement Contents Executive Summary 1 1. Introduction 1 1.1 Proponent 1 1.2 Objectives 1 1.3 Project Overview 1 1.4 Investment, Revenues, Employment and Project Life 4 1.5 The Environmental Impact Statement 4 1.6 Gas Agreement 4 2. Development Timetable 4 3. Project Setting, Facilities and Impacts—Onshore 6 3.1 Onshore Setting 6 3.2 Onshore Facilities and Travelogue 9 3.3 Onshore Issues, Proposed Mitigation Measures and Residual Impacts 11 4. Project Setting, Facilities and Impacts—Offshore 12 4.1 Offshore Setting and Travelogue 12 4.2 Offshore Issues, Mitigation Measures and Residual Impacts 13 5. Social Setting and Impacts 13 5.1 Population, Land Use and Social Organisation 13 5.2 Economics and Politics 14 5.3 Social Change 14 5.4 Issues 14 5.5 Proposed Mitigation Measures and Residual Impacts 15 6. Public Consultation 15 7. Cumulative and Associated Impacts 15 8. Management and Monitoring 16 Figures ES1 Nominal oil and gas production profiles with and without the PNG Gas Project 2 ES2 PNG Gas Project facilities locality map 3 ES3 Scope of gas developments in Papua New Guinea and Australia 5 ES4 Digital elevation model: Hides to Kutubu 7 ES5 Digital elevation model: Kutubu to landfall 8 i Esso Highlands Limited PGGP-EDR-00-SR-000-R26-0001 790_20_EIS_ExSum-Rev4.doc/December 2005 PNG Gas Project Environmental Impact Statement Executive Summary 1. Introduction 1.1 Proponent The PNG Gas Project is being developed through a joint venture between Esso Highlands Limited and its affiliates (as Operator) and Esso’s co-venturers Oil Search Limited and its affiliates, Nippon Oil Exploration Limited through its subsidiary Merlin Petroleum Company Limited, and subsidiaries of Mineral Resources Development Company Limited. 1.2 Objectives The PNG Gas Project has two interdependent objectives: • To commercialise the gas reserves of the existing Kutubu, Gobe and Moran oil fields and of the Hides gas field and, in so doing, • To maximise oil recovery from existing oil and gas fields and facilities. Figure ES1 shows the comparative size of the gas resource associated with the PNG Gas Project compared to the oil resource in question and how the PNG Gas Project might meet these two objectives. The attainment of these objectives fulfils the resource development policy and revenue goals of the State and provincial governments. For local landowners, the PNG Gas Project will significantly prolong the benefits they currently realise from the country’s oil and gas industry. 1.3 Project Overview The PNG Gas Project will be developed mainly within or adjacent to the footprint of existing oil and gas production facilities (i.e., it is predominantly a ‘brownfield’ venture). New development in ‘greenfield’ areas mainly comprises field production facilities at Hides, some 125 km to the northwest of the existing Kutubu Central Production Facility, and new onshore and offshore pipelines. The main project elements are as follows (Figure ES2): • Wells, gathering system and gas processing facilities at Hides and pipelines to Kutubu. • A new Central Gas Conditioning Plant to be located near the existing Kutubu Central Production Facility. • A sales gas pipeline running through the Kikori River basin to the Omati River landfall, and from there offshore across the Gulf of Papua to the international border with Australia. For the majority of its length within PNG, the sales gas pipeline right- of-way (RoW) lies within or adjacent to the easement of the existing crude oil export pipeline. 1 Esso Highlands Limited PGGP-EDR-00-SR-000-R26-0001 790_20_EIS_ExSum-Rev4.doc/December 2005 100 90 80 70 60 ) d e o 50 b m ( 40 30 20 10 0 2005 08 11 14 17 20 23 26 29 32 35 38 Kutubu Moran Gobe SE Mananda Gas Project Liquids PNG Gas Project Gas Oil production from current fields Total oil and gas production (PNG Gas Project) Note: Illustrative only showing the significance of the gas commercialisation opportunity provided by the PNG Gas Project relative to continuing oil production. Not intended as an accurate representation of forecast oil and gas production and timing Job No: Figure No: 790 PNG Gas Project Nominal oil and gas production profiles File No: with and without the PNG Gas Project ES1 790_20_FES1_HB Esso Highlands Limited 700 000 800 000 900 000 1 000 000 WEST EAST SEPIK SEPIK MADANG Karius Range ENGA Hides Tari Gas Plant Doma Peaks Idauwi Benaria Nogoli HIDES Angore Production Facility Mount Kerewa Mount Giluwe Komo Pai WESTERN PAPUA NEW GUINEA Mendi HIGHLANDS Mount Sisa Homa Omai AGOGO Production Facility Moro Inu Poroma Moro 9 300 000 Ridge Camp 9 300 000 Ludesa Mission Lake Kutubu KUTUBU Mubi River Orakana Central Production Facility and Iwa Range Central Gas Conditioning Plant CHIMBU Waru Manu Erave Erave River Mount Bosavi Humane Samberigi DARAI HegigioPLA River Mission Mount Murray Kantobo Wassi Falls EASTERN HIGHLANDS GOBE SOUTHERN Production Facility TEAU Kikori River Mount Duau HIGHLANDS Hivaro Kawatasi Kaiam Sumakarimo Faia GULF Koumaio Omati River Waira 9 200 000 Moka 9 200 000 Kubeai KOPI Kopi WESTERN Camp Kitomave Omati Kikori Wareho Veiru Bisi Misiki Veraibari Babai N Goaribari Is. 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