New Zealand Oil & Gas Welcomes Renewed Interest in Kupe
New Zealand Oil and Gas Ltd has welcomed news that fellow Kupe partner, Genesis Power, wants to have the offshore Kupe oil-gas field developed by 2005. NZOG, which was Kupe operator at the time the field was discovered off south Taranaki in 1986, says recent changes in Kupe ownership and the state of the New Zealand gas market are very positive for the future development of the Kupe field.
Development of Kupe has been hindered by relatively low gas prices, resulting from a gas market dominated by the offshore Maui field. However, recent announcements that Maui gas reserves could be depleted by as early as 2007 indicated a rapid appreciation in gas prices could be imminent.
The company says that Genesis Power’s plans to build a 400MW combined-cycle plant at Huntly, its increased stake in PML 38146 to 70%, and its role as operator of Kupe, all bode well for development of the field.
Genesis Power is talking with several oil companies regarding them taking over as Kupe operator, primarily to ensure development of the shallow-water field can be accomplished in time to have Kupe gas as the main feedstock for the new station at Huntly.