Oil Search Profit Climbs, PNG LNG 95 Pct Complete

Oil Search said on Thursday its 2013 net profit after tax was US$205.7 million, 17% higher than in 2012.

“The PNG LNG project, operated by ExxonMobil PNG Limited, made substantial progress in 2013, moving from 75% complete at the end of 2012 to more than 95% currently,” the company’s Managing Director, Peter Botten said.

“Construction crews are now starting to be demobilised and commissioning activities are well underway, both upstream at the Hides Gas Conditioning Plant (HGCP) and downstream at the LNG Plant site. The operator’s development personnel are progressively being replaced with ExxonMobil’s production team, who will supervise commissioning and operate future production activities.

“The remaining construction work is expected to be complete in early 2014 and includes finishing the pipeline system linking the Hides production wells to the HGCP and final work on the second train at the LNG Plant site. All Oil Search-operated activities are now complete and we are preparing to start handling and exporting Project condensate, which will be co-mingled with the existing PNG oil stream, ahead of first LNG production,” Botten said.

“In late January, the operator advised that it had narrowed the window for first LNG deliveries to the third quarter of 2014, consistent with the schedule established in 2009 when the Project was sanctioned. The operator has also advised that it remains confident it will deliver the Project within the US$19 billion revised capital cost estimate, which was provided in late 2012,” he concluded.

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LNG World News Staff, February 27, 2014; Image: Oil Search