PNG LNG drilling underway

by on July 30, 2012 3:07 am BST

The project partners are announced on Monday that the drilling rig Nabors Rig 702 has spudded the first of several production wells planned for the field which they hope will produce about 9 trillion cubic feet of gas over the life of the project.

“The start of our drilling programme is a key step in meeting our goal of first LNG deliveries in 2014,” said PNG LNG drilling manager Jim McDermott.

The joint venture also announced that a second drilling rig had arrived in Papua New Guinea and was currently being transported to the Hides area in the country’s Southern Highlands Province.

The $15.7 billion project is based on a two-train processing plant that will produce a total of 6.6 million tonnes per annum of LNG.

ExxonMobil operates the PNG LNG project with a 33.2% interest and is partnered by Oil Search on 29%, PNG government company Independent Public Business Corporation with 16.6%, Santos on 13.5%, Nippon Oil with 4.7%, PNG landowner company Mineral Resources Development Company on 2.8% and national oil company Petromin with 0.2%.