THE PNG LNG is a world class low-cost asset consistently delivering above nameplate productivity, according to Santos Ltd.
The Australian natural gas supplying giant said the project had been consistent since start-up
It acquired a 14 per cent interest in PDL-1 in 1998 which gave it access to significant parts of the Hides gas field, becoming a foundation partner of the PNG LNG. Speaking during the company’s investor day this week in Australia and relayed online, chief operations officer David Banks said there were opportunities for expansion in the future.
“One core asset that is operated by others is the PNG LNG,” Banks said.
“Exxon Mobil, the operator, does a very good job in terms of filling the plant.
“The plant has been tracking at 30 per cent better than nameplate capacity through very low cost operational improvement and bottle necking that has been completed.
“Production cost of US$4.85 (K17)/boe (per burial of oil equivalent) demonstrates that it is a world class asset and within that US$4.85/boe is something approaching a dollar of earthquake impact which we are in the process to recover through insurance and the like,” he said.
“In terms of backfill options, we have a number, one of them P’Nyang which is subject to framing agreements and we are working with partners in the Government on that.
“Muruk and Hides are also exciting backyard opportunities that will enjoy extreme capital efficient development costs and make the most of very well run infrastructure that we have in place there.”
TheNational/PacificMiningWatch
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