OIL ANALYST SEES PAPUA NEW GUINEA AS GOOD PROSPECT Papua New Guinea (PNG) provides the most exciting new prospect in the Asia-Pacific region for oil production, energy analyst Fereidun Fesharaki said here. The recent successful find at Iagifu is likely to put PNG on the list of major oil exporters by the early 1990s, he told the Australian Petroleum Exploration Association annual conference. Fesharaki, leader of the Energy Program at the East-West Center in Honolulu, Hawaii, was speaking on the Asia-Pacific petroleum outlook. With domestic demand of around 12,000 barrels per day (bpd) and prospects of production of over 100,000 bpd by late 1991, PNG would become an Ecuador-level crude exporter, Fesharaki said. The Iagifu wells in the Papuan Basin have recorded the best oil flows in more than 60 years of exploration in PNG. The PNG government's Geological Survey in a paper distributed at the conference estimates Iagifu reserves at about 500 mln barrels. PNG enjoys the most liberal tax regime in the region with no secondary taxes, Fesharaki said. "We expect a much larger oil search in Papua New Guinea, and discovery of much larger volumes of oil, similar in quality to (light) Bass Strait crude," Fesharaki said. There are also large pockets of high quality condensates to be produced, notably in the Juha field near Iagifu which is capable of producing 30,000 to 40,000 bpd, he said. But prices should be somewhat higher than the present levels to justify development of the Juha field, he said. The PNG Geological Survey paper noted there are five large prospective but little-explored sedimentary basins in PNG.