Worley Awarded Kupe Front End Engineering Design

Following a competitive tender, Worley has been awarded the contract to perform the Front-end Engineering Design (FEED) for the Kupe development off the Taranaki coast of New Zealand.

Following a thorough evaluation of a number of concepts for the development of the field, the Kupe Joint Venture has selected its preferred option and will now have a FEED performed to better define the engineering parameters that will be used for construction of the offshore platform, pipeline to shore and gas processing facility.

The development will produce 20 Petajoules per annum of sales gas along with 1.6 million barrels per annum of light oil from the second quarter of 2007.

Origin Energy as Operator of the field on behalf of the Joint Venture continues to make good progress with the technical studies associated with the development including:

  • Completion of a detailed seabed testing at the platform location
  • Completion of a seabed survey to identify a number of potential offshore pipeline routes
  • Commencement of discussions with relevant government authorities and local councils to obtain approvals necessary to allow the development to occur
  • Negotiations with owners of existing gas processing infrastructure to determine the viability of their providing a service to process the Kupe gas once it comes ashore

  • The overall cost of the development is expected to be between $350 million and $400 million. This includes the initial capital of $250 million for the construction of the platform, pipeline and gas plant along with the whole-of-life costs for drilling three wells initially, two wells later in the life of the field and then abandonment of the wells at the end of their useful life. At this stage in the engineering, the costs are very approximate.

    The Operator reports that everything is on track to provide sufficient technical, environmental and approval information for the Joint Venture to make its decision to proceed with the development by June 2005. Subject to an affirmative decision to proceed at that time first gas will be available in the second quarter of 2007. The Kupe Joint Venture comprises:

    Origin Energy (Operator) 50%
    Genesis Power 31%
    New Zealand Oil and Gas 15%
    Mitsui New Zealand 4%