LNG project now in its transition stage

By MATTHEW VARI

Wednesday, December 3, 2014 (Midweek Chronicle, PNG)

IN his speech to the PNG Chamber of Mines and Petroleum Conference in Sydney, Australia, the Managing Director of ExxonMobil PNG, Peter Graham, told those present that 2014 had opened a new dawn for the project in the country.

One he said that was moving from a transition from construction to production.

“As you will all be aware, 2014 has been an incredible year for Papua New Guinea as the PNG LNG Project moved from construction to production, with over 45 cargoes now safely dispatched,” Graham said.

“I have to say this is not so much a switch from one phase to the next but rather it is a journey- a journey we began years ago when this project started, and it’s a journey that will continue for many years to come.”

“To deliver this Projectwe have been working closely with our co-venture partners– Oil Search, NPCP, Santos, JX Nippon Oil and Gas Exploration, Mineral Resources Development Company and Petromin - along with the PNG National and local governments, key contractors and the communities near which we operate.”

He said without the support of stakeholders- what was achieved would not have been possible.

Graham revealed that they had developed and implemented a National Content Plan set on three pillars of Workforce Development, Supplier Development, and Strategic Community Investments.

“During construction we employed more than 9,000 Papua New Guineans and delivered more than two million hours of training through some 13,000 training courses,” he explained.

“Watching our Papua New Guinean workforce develop has been inspiring- they have a thirst for learning and given an opportunity to do so, invariably exceeded our expectations.”

“We have worked with local suppliers, which has resulted in an in-country spend of almost K11 billion including more than K2.7 billion with landowner companies.”

He added that they had demonstrated what can be achieved in the country- setting the stage for future investments in the “resource-rich nation”.

“Reaching our early production milestone generated an almost indescribable feeling of excitement throughout the company,” Graham said.

“The departure of that very first cargo on May the 25th was an historic moment that many of us, myself included, will never forget.”

“We established a team – Building the Production Organisation, or BTPO – dedicated to ensuring the operability of the plant and equipment, and ensuring that the organisation and processes were all in place and functioning to ensure both a safe start-up and ongoing safe operations.”

The objectives were to develop a safe, efficient production facility with minimum life cycle costs; to develop a multifunctional team with the necessary skills and experience to safely and efficiently operate the new facilities from day one; to ensure field support systems were in place and functioning for start-up; and to ensure incorporation of the company’s standards and regulatory requirements.

“Clearly, a highly skilled workforce is needed to operate and maintain the safety and integrity of facilities.”

“Given that this was the first of its kind in the country the training load was enormous- since the process facilities were still under construction, we developed and used sophisticated process simulators, specifically developed to mimic the control panels at Hides Gas Conditioning Plant and the LNG Plant.”

“Simulator Training was also used for the PNG Ports pilots who would be responsible for safely bringing the huge LNG tankers to berth in Caution Bay.”

“As just one aspect of the two million training hours we delivered, we trained almost 140 Papua New Guinean Operations and Maintenance technicians, who are now gaining on-the-job experience and learning from highly experienced expatriates at the LNG and Hides Gas Conditioning Plants.”