New Zealand's Kupe grows again

THE magic pudding that is the Kupe field, in New Zealand’s offshore Taranaki Basin, has once again had its reserves grow, writes Haydn Black.
New Zealand's Kupe grows again New Zealand's Kupe grows again New Zealand's Kupe grows again New Zealand's Kupe grows again New Zealand's Kupe grows again

Partner New Zealand Oil and Gas (15%), which is delisting from the Australian Securities Exchange, said that the Origin Energy (50%) led joint venture had reviewed the oil and gas field, and based on well performance had increased developed reserves from 5.22 million barrels to 6.02 million barrels.

That came on top of a 34.7% increase announced just six months earlier, from 4.2MMboe to 5.6MMboe.

As a result of detailed reservoir simulation uncertainty modelling, NZOG has concluded a further increase in 2P developed reserves of 15.29%.

The upgrade includes an extra 3.6 petajoules of gas and 16,690 tonnes of LPG compared to 2P developed reserves at 31 December 2015, minus the volumes produced since that time.

Chief executive Andrew Knight said the reserves upgrade was positive news.

"This reserves increase provides additional volume from within the existing development. It also provides further security that contracted volumes can be met without needing significant additional capital," he said.

In addition to the upgrade in developed reserves, technical work is nearing completion to assess development options for untapped reserves of a net 3.2MMbbl to NZOG that the JV partners are expected to take a decision on later this year.

NZOG earned $62.5 million in revenue from Kupe in the 2014-15 financial year. Its share of production from Kupe was 242,417bbl, 3.6 petajoules of gas, and 15,391 tonnes of LPG.

Genesis Energy (31%) and Mitsui (4%) are also in the JV.

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