OIL

Oil Search suspends PNG oil production

OIL Search has suspended production from its flagship Gobe and Kutubu oil fields in PNG due to th...

Oil Search suspends PNG oil production

An Oil Search spokeswoman told PNGIndustryNews.net today repairs to the Kumul terminal, where earlier this month 6700 litres of oil spilled into the ocean, were completed last week. But the company is still waiting on approval from the Department of Petroleum Energy to resume normal operations.

"We have shut in the fields because the storage tanks are full," she said. "We won't do anything until the Government gives us the green light to do so."

She said production had been suspended since Wednesday, with the company bringing forward planned maintenance work at both Gobe and Kutubu as a result of the suspension.

Oil from the Gobe and Kutubu fields is usually piped to the Gulf of Papua terminal where it is then loaded onto waiting tankers.

Following local press reports of the spill last week, which the company has described as "erroneous", the department directed the company to close the terminal until officials could assess the damage.

The spokeswoman said the officials from the department travelled to the terminal for the assessment on Friday and the company now expected an approval to resume operations in the next few days.

Meanwhile, the company has been forced to take out full-page advertisements in PNG's daily papers, the National and the Post-Courier, in a bid to "restate the facts on the incident".

"Due to continued rumour and mis-information regarding the recent minor oil spill from the Kumul terminal, Oil Search wants to restate the facts on the incident and actions that have been taken subsequent to it," the advertisement reads.

"The company would like to confirm that the incident was actively managed and monitored, in line with Oil Search's stringent safety and environmental policies and procedures."

Immediately following news of the spill last week, Gulf Governor Chris Haiveta claimed locals living on the coast had reported dead marine life as a result of the spill.

Oil Search maintains it has not seen any physical evidence to confirm these claims, saying it had conducted reconnaissance flights over the region following the spill and sent out community affairs representatives to speak with local villagers.

PNG Health Secretary Dr Nicholas Mann told the National that there was no risk to human health as a result of the spill.

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