OIL SEARCH STEPPING UP TO THE CHALLENGE 15 TH PNG MINING & - - PowerPoint PPT Presentation
OIL SEARCH STEPPING UP TO THE CHALLENGE 15 TH PNG MINING & PETROLEUM INVESTMENT CONFERENCE December 2018 OIL SEARCH LIMITED | ARBN 055 079 868 | ASX: OSH | POMSoX: OSH | US ADR: OISHY www.oilsearch.com HOW DID WE STEP UP TO THE
OIL SEARCH LIMITED | ARBN 055 079 868 | ASX: OSH | POMSoX: OSH | US ADR: OISHY
www.oilsearch.com
December 2018
15TH PNG MINING & PETROLEUM INVESTMENT CONFERENCE
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❖ 7.5 magnitude earthquake in February 2018. ❖ Last earthquake of similar magnitude more than 100 years ago. ❖ More than 200 aftershocks – many >4.0 and some >6.0 ❖ Occurred in the Oil Search and ExxonMobil area of
❖ No fatalities or serious injuries sustained by our employees
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Gobe / GPF complex Kutubu / CPF complex Moran / Agogo / APF complex
❖ Mountain sides collapsed filling rivers ❖ Villages and homes slid off the edge of mountains ❖ Communities significantly affected: – Many deaths and injuries – Destruction of homes, gardens and livelihood – Destruction of social infrastructure including schools, roads, bridges – Loss of basic necessities
❖ Survival was the first priority – Oil Search ‘First Responder’
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❖ Oil Search relief efforts: – ‘First Responder’ role (one of few organisations in PNG with ability to provide rapid on-the-ground assistance) – Our Moro logistical base – coordination point for delivery and distribution of aid – Oil Search Foundation (OSF), in partnership with Oil Search and other companies that donated funds, played a leading role in aid delivery to impacted communities ❖ UN estimates that we delivered almost 80 per cent of total food supplies to impacted areas in first four weeks after earthquake
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❖ OSH Earthquake Response – Video (PNG Field) ❖ OSH Earthquake Response – Video (Port Moresby)
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❖ Short term human impact – loss of basic life support systems (water, power, sewage) ❖ Destruction of, or damage to, accommodation, messing, power, water and sanitation at camps. ❖ Access to Kutubu and Hides lost as Highlands Highway and Southern logistics routes blocked by landslides and bridge damage. Infield roads also blocked. ❖ Agogo Processing Facility (APF) and Refinery damaged. ❖ Limited damage to Central Processing Facility (CPF) and Hides GTE.
STEPPING UP TO THE CHALLENGE
Clockwise from top left: ❖ APF HP Compressor cable trays ❖ Refinery Control Room ❖ APF compressor pipework misalignment ❖ Refinery Firewater Pump
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❖ Initial response: – Ensure all people and plant were safe – People evacuated to sustainable level – Camp, electricity, water, sanitation unavailable – Supply chain disrupted – A second dedicated team put in place to execute the our ‘First Responder’ social programme ❖ Recovery Phase – New team created reporting to EGM to manage operational recovery phase – Prioritisation and detailed plan put in place
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Export system, Gobe, CPF 26-Feb-18 Mid March End March (export system)
❖ Immediate priority was to re- establish gas supply to PNG LNG – Associated Gas (AG) fields supply ~20 per cent of PNG LNG gas – Export system, Gobe, Kutubu brought on-line before HGCP – Worked together with PNG LNG to optimise start-up ❖ Oil production has progressively increased based on facility rebuild, commissioning: – Gobe fields and Kutubu – Progressive start-up at Agogo and Moran – Moran – since start-up:
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OIL PRODUCTION
Hides SEG Unit Gobe Main Kutubu Agogo Moran
GAS SUPPLY TO PNGLNG
Kutubu Gobe Main SEG Unit
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❖ Further to our LNG expansion projects, significant low risk
❖ Potential to extend plateau oil production until 2023-24 and add > 30mmbbl net to OSH ❖ Subject to final technical and commercial review, programme commences with workover and drilling activity at Moran and Kutubu in 2019
Moran X well trajectory
M3XST1 M15
Moran X
M5ST2 M7ST1
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Appraisal Development
Increasing Risk Wells & Work Overs
Work Overs (2018/19)
Wells (2018/19)
Moran C Block Agogo Forelimb Hedinia Forelimb
(2020 – 2024)
(2020 – 2024)
(2018 – 2022)
Agogo Forelimb Moran X, O, Q, P Hedinia Forelimb Moran 4, 9 IDT 21 UDT S, H
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❖ Splitting the workload (relief efforts, operated facilities, BAU) helped greatly. ❖ Leadership and organisational behaviour: – Staff, contractors, suppliers adjusted to total change in the operating environment – Separated the operations versus development so as not to lose growth focus – Executives and senior management led from the front ❖ Adaptability – People asked to do activities outside of their experiences and knowledge – Clear goals, people stepped up, worked as a team, found solutions to problems,
❖ Values and culture – Strength of Oil Search culture shone through – Though things were turned upside down, Oil Search achieved no TRI in its
– Can do attitude permeated organisation with amazing achievements
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OIL SEARCH LIMITED | ARBN 055 079 868 | ASX: OSH | POMSoX: OSH | US ADR: OISHY
www.oilsearch.com