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Santos Says PNG LNG Is A World-Class Asset



Australian natural gas developer Santos Ltd said that the PNG LNG is a world-class low-cost asset delivering above nameplate productivity.

According to chief operations officer David Banks, opportunities for expansion can come in the future.

“One core asset that is operated by others is the PNG LNG,” he 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 bottlenecking that has been completed. The 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 added, “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 the infrastructure that we have in place there.”

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