NZ's Tui Field Pumps 25 Million Barrels of Oil

Tui operator AWE said, in its September quarter report, that after the end of the period the 25 million barrel mark had been reached. This was substantially ahead of initial projections, and a significant milestone for the business.

Oil production continued from the Tui fields during the quarter, with average daily production of 15,359 bopd.

Gross oil production reached 1.41 million barrels (with AWE share 0.60 million barrels) in the latest quarter. Minor production interruptions were encountered during the period due to the seasonal poor weather, which restricted operations and oil offloading on the Umuroa.

Over the quarter, the realised oil price rose slightly to A$82 (approximately NZ$102) per barrel.

One of the Tui partners New Zealand Oil & Gas (NZOG) said that total forecast production for the financial year to the end of June 2010 is 5.1 mmbbls with NZOG’s share 0.63 mmbbls.

NZOG said Tui oil continues to be a well regarded product in the region. A competitive process was run as a result of which a forward term sales contract has been signed. Shell in Australia will take a large proportion of Tui's production from January 2010. The terms are favourable, with a premium being paid above the regional Tapis crude benchmark.

AWE said the Tui oil field, PMP 38158, joint venture has recently reprocessed the existing Tui 3D seismic survey, and the improved data set will be used to confirm upcoming drilling locations.

Two appraisal wells are planned to be drilled close to the current Tui pool during the upcoming drilling program by the Kan Tan IV rig. The rig is now expected to arrive in the Taranaki Basin in January 2010 first drilling the Hoki well before moving on to the Tui wells.

AWE said any commercial discovery in the Tui appraisal wells could potentially be brought into production within 12-18 months.

This would involve drilling a production well, installing a sub-sea completion and tying it back to the existing floating processing facility, the Umuroa.