Oz Oil Search Curtails PNG Production

Australia-listed Oil Search August 28 said it has curtailed production from its Papua New Guinea oil fields and the PNG LNG operator ExxonMobil has partially reduced LNG production owing to damage in offshore loading facilities.

The company has not been able to investigate the damage due to adverse weather and sea conditions in the Gulf of Papua. “Consequently, as a precautionary measure, Oil Search temporarily suspended scheduled liquids loading last week. In addition, to extend the liquids storage available in the liquids export system, the company curtailed production from the Oil Search-operated oil fields and the PNG LNG operator partially reduced PNG LNG production,” it said in a statement.

Oil Search said it has developed a temporary solution for the safe berthing and loading of vessels at the facilities, which enabled liquids loading to resume at a reduced rate from August 25.

“Oil Search is working closely with the PNG LNG operator to ramp up production back to normal rates as soon as is practical, while the mooring system issue is fully investigated, and any necessary repairs are made. It is presently unclear whether it will be necessary to adjust our 2019 production guidance, as a result of these loading issues,” the company said.

Oil Search has guided for a 2019 production of 28 to 31mn barrels of oil equivalent.