Home | Latest News | Icing on the Kupe cake

Icing on the Kupe cake

Font size:

Date posted: 23/07/2010 11:21:00

NZOG will benefit from a $700m upgrade to Kupe.

The outcome of the review of the reserves position at the offshore Kupe oil and gas field could not have done much better for the owners, who overnight found themselves $700m richer.

Opened only last December, the existing reserves were those identified in 2006, but analysis of three development wells KS-6, KS-7 and KS-8 has now shown proven plus probable (2P) sales gas reserves have increased by 8% to 273 petajoules of natural gas, LPG reserves by 5% to 1.1 million tonnes (equivalent to 6 years NZ consumption), and light oil / condensate by an impressive 27% to 18.6 million bbls of oil (equivalent to 11 years demand in NZ).

Kupe has become a giant national treasure. The success of Kupe again underlines the emergent importance to the NZ economy of the oil & gas E&P industry and the resource mining sector in general.

Also reported are plans for an additional two production wells, which analysts expect to be drilled in 2015 or 2016 Origin Energy holds 51% ownership of the Field, SOE Genesis Energy 31, NZ Oil & Gas 15% and Mitsui 4%.

Since Kupe’s commissioning...

PREMIUM CONTENT: Read the full story plus broker analysis by clicking here.