In an update report Oil Search stated that following its initial assessment of damage across their oil operations, it appears that there has been minimal impact on the Gobe production facilities and that the liquids export pipeline and offshore facilities are undamaged.
Subject to more detailed inspections, oil production from the Gobe field will likely re-commence in the next one – two weeks.
Damage to Oil Search’s Central Processing Facility is less than feared, with the facility expected to be operational in the next two – three weeks.
As a result, production from the Kutubu field is anticipated to be progressively restored over the coming month, subject to the progress of rehabilitation work now underway on the Oil Search-operated ridge and Moro camps and associated facilities, which is required before the Company’s production workforce can return to site.
Repairs to a number of the control systems, wellpads, flow lines and fire water tank at the Agogo Production Facility (APF) and in the Moran field, the facilities most impacted by the earthquake, will be required prior to production reinstatement from this area.
The timeframe to re-start production through the APF is still being reviewed.
The Oil Search facilities that support the PNG LNG project are expected to be operational ahead of the recommencement of PNG LNG project production.
It states that once it has more clarity on the progress of repair works, both at the PNG LNG facilities and within Oil Search‘s operations, it will provide the market with revised production guidance and the likely impact on Oil Search’s 2018 earnings and capital outlook.
After a visit last week, Oil Search’s managing director Peter Botten said seeing the devastation caused by the 7.5 magnitude earthquake made him realise how fortunate Oil Search was not to have suffered any serious injuries within its workforce.
He said Oil Search staff in the field, supported by personnel in Port Moresby and Sydney did an outstanding job shutting down our wells and facilities safely in very difficult conditions and demobilising more than 600 staff.
“They are now addressing the challenge of re-establishing essential services in our camps and restoring production,”