Onshore pipeline contractor Spiecapag has begun the construction works from the shore base at Kopi where pipe is stockpiled.

In addition, offshore pipeline contractor Saipem is preparing to lay pipe for the offshore component of the pipeline. The route for this component has now been cleared.

“Procurement and mobilisation of pipe for both the onshore and offshore components of the project’s pipelines continues,” Oil Search said.

The offshore pipeline is due to be complete in 2012, and the onshore pipeline is set for completion in the following year.

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At the site of the PNG LNG Project’s onshore plant facilities in Port Moresby, materials procurement, earthworks and foundation works are continuing.

Oil Search said that the construction of structural steel works for the plant has commenced, as have jetty works and the building of foundations for the facility’s LNG tanks.

Upstream development of the gas facilities that will feed the LNG project continues, with construction resuming at the Hides Gas Conditioning Plant; earthworks and foundations are now being built for the airfield at Komo that will help to support project development.

Meanwhile, the company has commenced discussions with potential partners for a new LNG hub to be located offshore PNG.

“Oil Search believes the Gulf of Papua area has best potential for finding significant new gas accumulations,” Oil Search Managing Director Peter Botten said.

“We are targeting equity of between 30–35 per cent [in the potential project].”

Oil Search will begin a multi-well drilling program in the region in 2011–12 with the aim of capturing additional reserve opportunities.

ExxonMobil subsidiary Esso Highlands is the operator of the PNG LNG Project; Oil Search holds a 29 per cent interest. Other participants include the PNG Government, Santos and Nippon Oil.