The Kupe Gas Project comprises:
It is anticipated that the project will be ready for the Joint Venture to make the Final Investment Decision during the first quarter of 2006. If approved it is expected that commercial production will commence during 2008.
The project is currently in detailed discussions with a number of onshore and offshore contractors. Latest estimated project costs are approximately NZD 800 million which is considerably higher than originally anticipated. These increases are due to higher commodity prices, particularly for steel, and the unprecedented level of activity in the oil and gas market around the world which has occurred as a result of high oil prices and the damage caused to facilities by the recent hurricanes in the Gulf of Mexico. The economic impact of these cost increases is expected to be partially offset by the increased revenues resulting from higher prices for condensate and LPG produced from the field and the impact of increased reserves as previously announced.
The Kupe Gas Project is important to New Zealandís future security of gas supply and there is significant potential for additional gas resources close to the planned development.
The Kupe South Joint Venture comprises:
Origin Energy Resources (Kupe) Limited 50.0% (Operator)
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