JOHANNESBURG (miningweekly.com) - The Papua New Guinea (PNG) LNG facility, which is part owned by ASX-listed Santos, is expected to remain closed for about eight weeks following a February 26 earthquake.
Santos, which has a 13.5% interest in PNG LNG, noted on Monday that it has been advised by the PNG LNG operator that, following the earthquakes in the Southern Highlands and Hela provinces during the week of February 26, preliminary assessments of damage to PNG LNG facilities indicate that it may take about eight weeks to complete repairs and restore production.
While all Santos' and PNG LNG's project personnel are safe and accounted for, the company noted that it is "deeply saddened by the loss of life and personal injury suffered by communities in Papua New Guinea".
The company will donate $200 000 to aid agencies to provide assistance to isolated communities who urgently need food, water and medical supplies.
PNG LNG expertise and resources have already been deployed to assist the humanitarian relief and recovery effort, including assessing impacted communities and delivering immediate resource needs.
In addition, Santos stated that recovery work at the Hides Gas Conditioning Plant is focused on restoring camp and associated facilities.
The operator further noted that it has also brought forward scheduled maintenance activity at the LNG plant and has redeployed maintenance and support staff from the Hides Gas Conditioning Plant to assist.
"While the plant is safely shut in, there has been some damage to various pieces of equipment and foundation supports that is yet to be fully inspected and repaired. Initial visual inspections of the major processing equipment indicate they have not been significantly impacted, with surveillance of the pipeline confirming that it has not been damaged."
Production wells, however, remain safely shut in.
A detailed inspection of some well pads has been hampered owing to earthquake-related impacts to the roads and it is hoped this work can be completed within the next week.
Komo airfield will remain closed and options are being developed to return the airfield to service as soon as possible.