The National, Thursday 23rd August, 2012
CONSTRUCTION activities in various PNG LNG project sites continued apace during the first-half of this year, according to Oil Search managing director Peter Botten.
He said in the company’s half-yearly report that some of the milestones achieved included the completion of the outer shells and roof installation for the two LNG tanks, installation of key vessels and equipment on the LNG trains and the completion of the 2.4km jetty trestle and the offshore pipeline lay.
“The recent government elections caused no significant disruptions to activities at any of the work fronts,” Botten said.
“The project’s construction activities have now reached their peak level, with a workforce in excess of 17,600 people.
“At the end of June 2012, more than 8,500 PNG citizens had received training for both construction and production roles across the project and more than 1,300 local businesses had been supported through training and business development programmes.
“This leaves a strong legacy of skills and experience for use on future major developments, both in PNG and elsewhere.
“While substantial construction activities still remain to be completed, the project is presently on track to meet the revised budgeted capital cost of US$15.7 billion and continues to make good progress towards the 2014 delivery window.”
Botten said Oil Search’s new drilling programme has had an excellent start, with the discovery of a major gas resource at the P’nyang South prospect in Western province.
“Work is presently underway on further defining the resource and analysing various development options,” he said.
“Based on data to date, Oil Search believes that P’nyang has the potential to be a key underpinning resource for LNG expansion, particularly in combination with the gas reserves upside in the associated gas fields.
“The second well in the gas expansion programme, Trapia 1, is currently drilling.
“This is a higher risk, exploration play but the prospect lies close to the existing PNG LNG fields and infrastructure so, if successful, would be a very valuable source of gas.
“There are a number of additional structures on trend with Angore and Trapia, which provide independent follow-up.
“In the offshore Gulf of Papua farm-down process, the data room has closed and bidding has concluded, with a range of competitive offers received.
“Discussions with preferred farm-in partners are at an advanced stage and a farm-down is expected to be concluded shortly.“The Stena Clyde drillship is scheduled to be on-site and start drilling next January.”