Technip Gains Preferred Contractor Status for Kupe Project

Origin Energy has awarded 'preferred contractor' status to Technip Oceania Pty Ltd for construction of both the onshore and offshore components of the project.

This follows the announcement last month of Technip as preferred tenderer for the construction of the production station and other onshore infrastructure.

The offshore component of the project – which has now been added to the original scope of work - involves the design, construction and commissioning of the offshore platform, the pipeline and umbilical connecting the platform to the production station and supervising the Horizontal Directionally Drilled (HDD) shore crossing.

Subject to a final investment decision and if Technip is awarded the contract for both the on- and off-shore components of the project, Origin and Technip will form a joint implementation team (called an Alliance Team).

The team will be led by senior executives from Origin and Technip and resourced by personnel from both companies.

"Using the same contractor for both the on- and off-shore components of the project, and managing the construction under an alliance agreement, offers enormous advantages to the project," said Origin's Executive General Manager for Major Development Projects, Andrew Stock.

"This arrangement will assist the identification and realisation of synergies between the work programs for each component of the project, resulting in cost and logistic efficiencies. It will lead to more effective execution of the project."

"We believe having the project owners and the lead contractor working as one team, with shared objectives and shared risk/reward arrangements, is the best way of managing the currently-challenging and competitive oil and gas construction market," he said.

Technip Oceania is based in Western Australia and Malaysia and provides engineering and construction management services across Asia Pacific with access to the global resources of Technip, one of the world's largest project management and construction companies.

The award of a preferred contractor is another important step towards reaching a final investment decision on the project later this half-year.

Participants are Origin Energy as operator with 50%; Genesis Energy with 31%; New Zealand Oil & Gas Limited with 15% and Mitsui E&P New Zealand Limited with 4%.