PNG-LNG project off line for 8 weeks

March 5, 2018
PNG-LNG project operator ExxonMobil says preliminary assessment of the damage to its facilities in the Southern Highlands from last week’s earthquakes indicates it may take up to eight weeks to repair and restore production.

PNG-LNG project operator ExxonMobil says preliminary assessment of the damage to its facilities in the Southern Highlands from last week’s earthquakes indicates it may take up to eight weeks to repair and restore production.

The company’s manager in Papua New Guinea, Andrew Barry, said the world-class design and construction of the gas conditioning plant near Hides and the quick response from staff in performing the emergency shut-down meant that damage to equipment was minimised and there was no release of hydrocarbons.

All employees and contractors at the facilities were safe and evacuation of about 300 non-essential personnel was done quickly and efficiently.

Work at the plant has now turned to restoring the camp and associated facilities.

Barry added that ExxonMobil has assembled a team of technical experts from its global workforce to help in damage evaluation and the restoration of production.

He said that there has been damage to various pieces of equipment and foundation supports that need to be inspected and repaired. Initial visual inspections of the major processing equipment indicate that they have not been significantly impacted.

Surveillance of the gas pipeline feeding the LNG plant on the coast showed it has not been damaged. All wells are safely shut in although a detailed inspection of some well pads has been hampered by earthquake-related damage to roads in the region.

ExxonMobil has also brought forward scheduled maintenance activity at the LNG plant.

The Komo airfield will remain closed as options are developed to return it to service.

Project partner Oil Search Ltd., which operates the oil and gas operations at nearby Kutubu has also conducted initial assessments. It has found that there was minimal impact on the Gobe production facilities and that the liquids export pipeline to the Gulf of Papua as well as the offshore facilities in the Gulf are undamaged.

It is likely that Gobe oil production will resume in the next fortnight.

Damage to the company’s central processing facility at Kutubu is less than initially feared and this plant is also likely to be operational within the next three weeks.

Repairs to a number of the control systems, well pads, flow lines and fire water tank at the Agogo production facility and in the Moran field —all of which were the most impacted by the quake—will be required prior to reinstatement of production from this area. The time-frame to re-start here is still being reviewed.

All PNG-LNG project joint venturers, including ExxonMobil, Oil Search and Santos, have provided monetary and physical aid to stricken communities in the earthquake area, such as food, water, shelter and medical support. Oil Search’s Moro airbase is being used as a hub for aid distribution and the company has also sent engineering teams to help in clearing the Kopi to Kutubu road as an alternative to the Highlands Highway to provide a route for the bringing in of emergency supplies and equipment.