First Production at NZ's Kupe Around the Corner

The Kupe Field
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In its third quarterly report, Origin Energy noted that construction of the onshore production station near Hawera is finished and the entire production system from reservoir to final product export is now complete for the Kupe gas development in the Taranaki Basin, New Zealand.

The system is being progressively pre-commissioned and livened and the project remains on target to open the wells in the December Quarter 2009 thereby commencing final commissioning and the ramp-up of production from the Kupe field. Construction of the two light crude storage tanks and truck receiving facilities at the Omata Tank farm and the associated export pipeline and ship export facilities at Port Taranaki are also essentially complete. These facilities are now being commissioned ready to receive product once trucking of light crude from the production station commences.

As the project approaches completion it is expected that the gross capital cost will be approximately NZ $1,330 million, around 10% higher than previously advised in August 2008. Expected revenues from the liquids rich project have also increased significantly since the project was approved in June 2006. Once online the Kupe Gas Project will produce 20 PJ of sales gas per annum and provide up to 90 kilotonnes of LPG and 1.7 million barrels of condensate per annum.


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