Oil Search today announced its activities report for the quarter ended 31 December 2011.
Highlights
Commenting on the quarter, Managing Director, Peter Botten, said:
PNG LNG Project
“ Good progress was achieved on all Project elements during the fourth quarter. Major earthworks are well advanced while facilities and associated support construction is also progressing well. Project milestones achieved during the period included the commencement of the offshore pipelay and the arrival of the first foundation piles at the Hides Gas Conditioning Plant site.
We are pleased that the Operator has recently confirmed the Project is on track for first gas in 2014. In addition, apart from a US$0.7 billion foreign exchange impact, the Operator has confirmed that the budget is largely unchanged, despite the significant cost pressures facing the LNG industry in general. Oil Search is amply funded to meet its modest equity share of the foreign exchange related increase in the budget.
The fourth quarter saw a period of unprecedented constitutional and political uncertainty in PNG. It is a testament to the strong Government support for PNG LNG that this did not affect either the Project or Oil Search’s oil and gas activities.
The Project continues to maximise local involvement in project activities. It is particularly encouraging to see a new generation of talented PNG high school graduates completing the first phase of their operations and maintenance training programmes. They will now progress to a one year advanced skills training programme overseas and a second intake of trainees will be developed in 2012.
Oil Search also made progress on a range of construction activities for the Associated Gas and PL 2 Life Extension Projects. A milestone was reached on the Associated Gas Project, with all major process equipment, including gas dehydration and commissioning gas units, now in PNG. The construction of a new control room building at the Central Processing Facility was completed and installation of the control equipment is underway. Installation of the new CALM buoy and subsea pipeline for the PL 2 Life Extension Project was also completed and will be commissioned in early 2012.
Preparations are ongoing for the commencement of the drilling phase of the Project, with progressive mobilisation of the two drill rigs to PNG and the Highlands. The Operator continues to optimise logistics to meet both Project construction and drilling timing requirements. Drilling is presently anticipated to commence in mid-2012 .”
[mappress]
LNG World News Staff, January 24, 2012