Project Profile
Value: US$204 million
Location: Offshore Taranaki Basin in PEP 38158, New Zealand
Reserves (2P recoverable reserves): 2.4 million barrels gross, 360,000 barrels (at 1st January 2015, from Pateke-4H well)
Production: 15,000 bopd
Water depth: 394 feet (120 metres)
Start-up Year: 30/07/2007
New Zealand\'s first stand alone offshore oil development is the Tui Area Oil Project, consisting of three fields, Tui, Amokura and Pateke, connected to the Umuroa FPSO, situated in the offshore Taranaki Basin in PEP 38158. Interest holders in the project are AWE, serving as the operator and holding a 42.5% interest, Mitsui E&P Australia Pty Limited holding a 35% interest, New Zealand Oil & Gas Limited holding a 12.5% and Pan Pacific Petroleum holding the remaining 10% interest. The oil accumulation was found by the Tui-1 discovery well, drilled in February 2003, encountering a 33-foot (10 metre) oil column of light sweet crude. A seismic survey was performed shortly after in April 2003 to delineate the Tui field accumulation and to find additional prospects. based on the findings, the operator drilled more exploration wells and found the Amokura-1 well in April 2004, encountering a 40-foot (12 metre) oil column, and the Pateke-2 well, drilled in August 2004, also encountering a 40-foot (12 metre) oil column. The Ocean Patriot semisub was leased to drill four development wells in the fourth quarter of 2006 and took approximately six months for the drilling and completion of the wells. The area is estimated to contain 50.1 million barrels of oil. The Tui project commenced production on July 30, 2007 and pumped its 25 millionth barrel in December 2009. The field produces roughly 15,000 bopd.
At a development cost of US$204 million, the project compromised the joint development of the three fields\' oil accumulations. The development of the fields, in water depths of 394 feet (120 metres), was launched by four horizontally drilled development wells tied to the Umuroa FPSO. The oil is processed on the vessel before being exported via export tankers, and then sent to shore. On Nov. 18, 2005, the operator awarded a contract to Prosafe Production Services for the provision of an FPSO for the project\'s development. Prosafe built and operates the FPSO as part of the contract agreement. The US$178 million contract is for a fixed initial term of 5 years with five one-year extensions. Umuroa has a design capacity to handle up to roughly 120,000 barrels of liquid per day. For Pateke-4H well, there is an estimate in 2P recoverable reserves of 2.4 million barrels gross, 360,000 barrels net to PPP as at 1st January 2015.
Operators:
Tamarind Management: Operator with 100% interest
Contractor:
Diamond Offshore: Drilling rig semisub
Frigstad Offshore: Drilling using semisubmersible Kan Tan IV
Prosafe Production Services: Provision of an FPSO
Sub-contractors:
EM&I Australia: Contract award from BW Offshore, for a frame agreement to supply conventional and specialised NDT services on the Umuroa FPSO. (February 2016)