PNG LNG 'Offline for Eight Weeks': Santos

The Papua New Guinean LNG terminal, which reportedly had force majeure called on its exports last week following an earthquake which hit the country February 26, is likely to remain offline for about eight weeks, project partner Santos said March 5.

Santos said it received advice from operator ExxonMobil that preliminary assessments of damage to PNG LNG facilities indicate it could take around eight weeks to complete repairs and restore production. “Recovery work at the Hides Gas Conditioning Plant is focused on restoring camp and associated facilities. While the plant is safely shut in, there has been some damage to various pieces of equipment and foundation supports that is yet to be fully inspected and repaired,” Santos said.

“Initial visual inspections of the major processing equipment indicate they have not been significantly impacted,” it said. The pipeline also appears to be undamaged, it added.

“Production wells remain safely shut in. A detailed inspection of some well pads has been hampered due to earthquake-related impacts to the roads. It is hoped this work can be completed within the next week,” it said.

Santos said, in addition, the operator has brought forward scheduled maintenance activity at the LNG plant and has redeployed maintenance and support staff from the Hides Gas Conditioning Plant to assist.

ExxonMobil was not available for immediate comment on the reported force majeure. On March 5, an Oil Search spokesperson declined to comment on confidential contracts.  

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.