Project Profile
Value: US$1.3 billion
Location: Taranaki basin, New Zealand
Reserves: 6.02 million barrels of oil & 16.69 kilotonnes of LPG
Water depth: 35 m / 116 ft
Start year: December 2009
In 1986, the discovery well, Kupe South-1, flowed at a rate of 2,000 bopd and 5.4 MMcf/d (15 MMcm/d). The following year, Kupe South-2 was appraised confirming the discovery, followed by the drilling of well Kupe South-3 and sidetrack well 3a. The two appraisal wells and the discovery well formed the basis for the Kupe field development. However, at the time of discovery, the field was considered uneconomic due to the low prices of natural gas, so Kupe sat undeveloped for 18 years. Once gas prices picked up in 2006, the partners proceeded to develop the Kupe field, which is estimated to contain proven and probable reserves of 14.7 million barrels of light oil/condensate and 1.1 million tonnes of LPG.
By June 2008, the drilling and testing of the three wells, using the Ensco 107 drilling rig, were completed and temporarily plugged pending the completion of the onshore production station. Technip was awarded a US$200 million contract for the overall development of the Kupe gas project. The contract was executed in alliance with Origin, and the two jointly implemented the construction program. The contract comprised the design, engineering, procurement, installation, construction, pre-commissioning and commissioning of the unmanned platform, the 12-inch-diameter pipeline, the onshore processing facility, the export pipeline for sales gas and the condensate loading bays. The work commenced in 2007 and is nearing completion. The Kupe Project commenced production on December 4, 2009. The field has a life span of 15 to 20 years and is expected to produce 15% of New Zealand\'s yearly gas demand and 50% of the country\'s LPG demand. In December 2015, the operator of the project has upgraded the developed reserves.
The Proved plus Probable developed reserves of the field have increased by approximately 33 per cent from 27.7 million barrels of oil equivalent (BoE) to 36.9 million BoE. The reserves increase and improved well performance will provide additional volume from within the existing Kupe development, and is likely to delay the need for further capital investment for the second phase of drilling currently planned under the Kupe Field Development Plan. Further work is being performed to assess future development options at Kupe, including options for the undeveloped reserves that were included in Genesis Energy’s total Kupe Proved plus Probable reserves at 30 June 2015. An updated Field Development Plan is completed in the second quarter of 2016.
Operators:
Origin Energy: Operator with 50% interest
Genesis Energy: 46% interest
New Zealand Oil & Gas: 4% interest.
Contractors:
Ensco: Drilling rig
Sal Heavylift: Carried out the transportation of a 550 mtons topside from Bangpakong, Thailand to New Plymouth, New Zealand for Origin
Technip: EPC contract