Speaking at a second quarter earnings conference call, vice-president investor relations David Rosenthal said the company recently completed some key milestones and the project was continuing as planned.
"We've got project execution underway, including all the infrastructure development, roads, bridges, site preparation [and] camps," he said.
"We're scaling up the mobilisation of the contractors as we get into the larger facility build. In fact, we've recently completed some very key milestones and the project continues as planned.
"There's always minor things that come up in any projects and we manage those but, as we look forward, the project is on target to deliver first LNG in 2014."
In recent months the PNG LNG project has faced civil unrest arising from landowner issues, while concerns have been raised about mounting industry cost pressures in the wake of a further delay at Woodside Petroleum's Pluto LNG project.
Last month Deutsche Bank gave the PNG LNG project a probability of development rating of 95% for the first two trains, while Macquarie Private Wealth recently said while operating in the PNG highlands brought its own set of challenges, the project did not face the labour shortages and powerful unions that could hamper progress in rival Australian projects.
Macquarie also said PNG LNG enjoyed superior economics that placed it in a better position to absorb cost overruns and schedule slippage.
Meanwhile, Exxon reported its second quarter earnings jumped 41% on the same period last year to $US10.7 billion ($A9.7 billion) due to higher oil and gas prices.
The rise in second quarter earnings pushed earnings for the first half of 2011 up 54% to $21.3 billion.
Production in the second quarter rose 10%, driven by the company's assets in Qatar and growing unconventional gas portfolio.
Capital and exploration expenditures for the quarter were at a record $10.3 billion, up 58% from the second quarter of 2010, reflecting an increase in US unconventional activities including the recent acquisition of the Philips Companies, which hold unconventional assets in the Marcellus shale.
Friday, 29 July 2011
energynewspremium.net
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