Oil Search’s PNG Facility Restarts

Australia-listed Oil Search’s central processing facility (CPF) in Papua New Guinea has resumed operations following a five-week shut in, the company said April 3. A 7.5-magnitude earthquake struck the region on February 26. Production has now started at a number of Kutubu oil field wells at an initial rate of about 4,000 barrels of oil/day, it added.

“This follows a detailed assessment of all Oil Search-operated infrastructure, including the processing equipment, storage tanks and flowlines at the CPF, and minor remedial work to ensure the facility’s integrity,” Oil Search said.

The Oil Search operated condensate handling facilities at the CPF and liquids export pipeline, which are integral to the operations of the PNG LNG project, are also ready to receive, store and export condensate once the project restarts gas production. PNG LNG was also shut due to the earthquake and is not expected to re-open until the end of the month.

“The resumption of safe, reliable and sustainable operations in PNG remains a key priority for Oil Search. The recommencement of operations at the CPF and oil production at Kutubu, just over a month after the main earthquake struck is a testament not only to the robustness of the facility but also the remarkable efforts of our personnel in the field,” Oil Search managing director Peter Botten said.

“There is still a lot of work ahead of us, but I would like to thank them once again for their resilience, professionalism and commitment over the last month,” he added.

PNG LNG is operated by ExxonMobil (33.2%), with Santos (13.5%), National Petroleum Company of PNG (16.8%), JX Nippon Oil and Gas Exploration Company (4.7%), Mineral Resources Development (2.8%), and Oil Search (29%) holding interests in the project.