Delivering upstream gas developments in Papua New Guinea—challenges and lessons learned*

Abstract

PNG is a unique environment and culture that presents some intriguing risks and challenges in project delivery. Clough has delivered 68 projects in PNG over the past 26 years and is recognised as one of the most experienced contractors in the region. The company has been involved in all major PNG upstream gas developments including Hides, Kutubu, Moran and Gobe.

Clough is currently delivering the upstream infrastructure for ExxonMobil’s US$11 billion PNG LNG project. This paper will use case studies from Clough’s 26 years of experience in PNG to review the key challenges and define strategies used to overcome these challenges in order to deliver PNG’s largest ever resource project.

Key challenges include:

1. Logistics—most of the gas reserves in PNG are difficult to access and located at very high elevations. For example, the Hides wellpads for PNG LNG are located approximately 2,700 m above sea level and accessed by a rough and dangerous road.

2. Security—overcoming security risks including community unrest and the existence of armed bandits on key supply routes.

3. Landowner issues—how to work with PNG’s local communities to ensure they are happy with project outcomes to reduce landowner issues.

4. Training local labour—equipping the local workforce with the skills required to deliver the project to Australian standards, which provides life changing skills for the local community.

Key to Clough’s continued success in PNG has been its ability to effectively capture lessons learned on all completed projects and apply this knowledge to improve future project outcomes. Critical lessons will be communicated during this presentation.