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Oil Search profit and production surges on the back of PNG LNG despite Kurdistan setbacks

19th August 2014

Oil Search seems to have had a bumper first half 2014 as the PNG LNG Project boosts overall net profit to 34 per cent more than in the same period of 2013, and production levels rising 68 per cent in the same period – the only woe seeming to be Kurdistan, where operations are suspended at Taza 2 die to the security situation

Oil Search profit and production surges on the back of PNG LNG despite Kurdistan setbacks
Oil Search also has significant interest in the troubled Kurdistan region of Iraq

“Both PNG LNG Project LNG trains are now operating at full capacity, just three months after first production,” said Peter Botten, Oil Search managing director. “ExxonMobil’s development personnel are being steadily demobilised and, as they leave, I would like to congratulate them for delivering the project ahead of schedule, within the revised budget and, together with the new production team, for completing the commissioning and ramp-up phase safely and efficiently.”

The PNG LNG project involves the development of gas and condensate resources in the Hides, Angore and Juha fields and associated gas resources in the operating oil fields of Kutubu, Agogo, Gobe and Moran in the Southern Highlands, Hela and Western Provinces of Papua New Guinea.

“The only remaining development activity for this phase of the project is the completion of drilling. The second of the two Hides Wellpad G wells, G2, and the Produced Water Disposal (PWD) well are both expected to reach their objective before the end of the third quarter.

“Two production wells on the Angore field and a production/exploration well, Hides F1 Deep, will then be drilled prior to demobilisation of the two Nabors rigs.”

Oil Search also has significant interest in the troubled Kurdistan region of Iraq.

Unfortunately, Oil Search seems to be suffering the same fate as other operators in the region and has had to scale programmes at one of its wells

“Due to the recent increase in regional tensions, our ability to deploy key skilled technicians, equipment and materials to the Taza 2 well site has been interrupted. Consequently, in consultation with Kurdistan’s Ministry for Natural Resources, we have decided to temporarily suspend the well. As the security situation at Taza is presently stable, our other operations, including rigging-up at the Taza 3 appraisal well site and the acquisition of 570 square kilometres of 3D seismic, are ongoing. We are continuing to monitor the security situation closely and plan to re-commence Taza 2 operations once we are confident that the long term integrity of our supply chain has been safely re-established.”

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