Oil & Gas Journal - Kupe field off New Zealand due development

MELBOURNE, June 30 -- The Kupe Joint Venture, operated by Origin Energy Ltd. of Sydney, has given final investment approval to development of Kupe natural gas-condensate field in the Taranaki basin off New Zealand's North Island.
Project development costs, however, have increased to $980 million (N.Z.) from $800 million.
Origin said the project is expected to come on stream by mid-2009 and produce about 20 PJ/year of gas along with 1.7 million bbl/year of condensate and 90,000 tonnes/year of LPG.
The gas flow represents about 15% of New Zealand's current annual gas demand.
Reserves at the field are put at 389 PJ of gas equivalent.
The project will consist of an unmanned fixed platform with as many as six wellheads, an undersea pipeline to connect to the onshore section via a coastal crossing bored under the cliffs, and an onshore production facility.
The venture has forged an alliance contracting arrangement with Technip to handle construction management. Work is expected to begin in September with the first development wells scheduled for first half 2007.
Interest holders are Origin 50%, Genesis Energy 31%, New Zealand Oil & Gas Ltd. 15%, and Mitsui E&P New Zealand Ltd. 4%.