Damage at facility leads to reduction of LNG production

THE PNG LNG Project produced at a gross rate of nearly nine metric tonnes per annum in July but it was reduced in August, Oil Search outgoing managing director Peter Botten says.
Botten said it was necessary in September to reduce the project production rates for a short time because damage to one of the six mooring chains at the offshore liquids loading facility was detected. The company’s 2019 third-quarter result was released yesterday.
“This prevented normal liquids loading procedures and consequently reduced ullage within the liquids storage system,”Botten said.
“Despite these production disruptions, annualised gross PNG LNG production for the quarter averaged 8.3mtpa, 20 per cent above nameplate capacity and the average annualised production rate for the nine months to Sept 30, 2019, was 8.5 mtpa.
“Due to the offshore loading issue, crude production from Kutubu, Moran and Agogo fields was curtailed or shut-in in August and September, with priority access to available liquids storage given to PNG LNG condensate.
“Oil Search continued to supply feed stock gas to the PNG LNG Project during the curtailment period.”
Botten said following the mobilisation of materials and equipment to site, repairs to the damaged mooring chain were completed successfully in mid-October and normal loading operations had resumed, with production ramping up. As a precaution, maintenance work on the other mooring chains at the facility has commenced. Botten said total revenue for the third quarter was US$361.1 million (K1228.23mil); 5 per cent lower than the prior quarter, reflecting lower sales, weaker realised oil and condensate prices and the timing of LNG cargoes, with three cargoes on the water at the end of the period, compared to two at the end of the second quarter.