Project Profile
Location: Taranaki, 20 km south east of New Plymouth, New Zealand
Production: 420 barrels of crude oil and 800 barrels of condensate
Discovery Year: 1980
The McKee field is located in Taranaki, 20 km south east of New Plymouth, with the McKee Production Station some 12 km inland from the Methanex Motunui complex. Forty wells have been drilled from 13 well sites scattered over the surrounding farmlands and oil, gas and water flow via an extensive in-field pipe network to the production station for processing. The McKee oil field was discovered in 1980 by state-owned Petrocorp Exploration Ltd. Over the next four years a number of accumulations in adjoining fault blocks were discovered, Pouri, Pukemai, Tuhua and ToeToe, although it quickly became apparent that these compartments formed part of the overall McKee
field. The geologically complex McKee structure is a major thrust fault, with a north east direction. The hydrocarbon accumulation occupies a steep south-easterly dipping (up to 60o) sandstone reservoir sequence truncated against the fault at a depth of 2000-2400m below sea level. The field is cut by a number of lesser reverse and normal faults, which may consist of multiple faults or fault zones. The oil was located in a thick oil rim, located on the flank of the structure, with a gas cap overlying this rim in the crestal part of the field. Due to compartmentalisation, the original fluid contacts varied from block to block. With an active drilling programme oil production was initially maintained around 10,000 stock tank barrels per day (stb/d) but in the early ‘90s oil production declined steadily, while at the same time gas and water production increased. The production in 2010 was 420 barrels of crude oil and 800 barrels of condensate. In 1988 Petrocorp Exploration was sold to Fletcher Challenge Energy, which was acquired by Shell in 2001. To achieve Commerce Commission clearance for their purchase of FCE, Shell sold the McKee asset (PML 38086), and the nearby Mangahewa asset (PMP 38150), to Todd Taranaki Ltd. Since acquiring these assets, the steep decline of oil production has been slowed and the reserves have been reassessed. In recognition of the higher gas reserves, Todd has committed to a 40% increase of the gas processing capacity, while at the same time it has introduced gas reinjection in order to enhance the oil production.
Operators:
Todd Energy: Operator with 100% interest