Kupe Gas Project offshore work completed
NZO
13/06/2008
MINE
REL: 1333 HRS New Zealand Oil and Gas Limited
MINE: NZO: Kupe Gas Project offshore work completed
Origin Energy Limited ABN 30 000 051 696 -Level 45 Australia Square, 264-278
George Street, Sydney NSW 2000
GPO Box 5376, Sydney NSW 2001 - Telephone (02) 8345 5000 - Facsimile (02)
9252 1566 - www.originenergy.com.au
ASX Release
13 June 2008
Kupe Gas Project offshore work completed
Origin Energy Resources (Kupe) Limited, on behalf of the Kupe Joint Venture,
is pleased to announce the achievement of a major milestone in the Kupe Gas
Project - the completion
of offshore facilities.
The offshore well head platform, three production wells and pipeline to
shore, which are half the cost of the entire project, are now ready for
production and await completion of
the onshore production station next year before starting to flow gas and
associated hydrocarbon liquids from the Kupe field.
Kupe Project Director Peter Ashford commented:
"Three development wells are now connected to the platform and from mid 2009,
once the onshore works are completed, will supply 15% of New Zealand's
projected gas demand, 50% of the LPG demand and 14.7 million barrels of
condensate over the projected life of the field".
"All of these wells have all been production tested and high flow rates of
gas and condensate have been demonstrated from each as expected".
"Completion of this part of the project is a credit to the project team,
which includes development partners Technip, drilling management advisors
Australian Drilling Associates
and Ensco Drilling, as well as the local workforce and the wider community.
We are delighted with the way that everyone has worked together to make this
possible".
"It is also in large part due to the co-operation that we have received from
many New Zealand companies and agencies, particularly in New Plymouth and in
Picton".
The Kupe Gas Project received Government approval in June 2006 and the
offshore programme of work includes:
- The fabrication and installation of a normally unmanned well head platform
30km offshore from South Taranaki;
- The drilling and testing of 3 wells on the well head platform;
- The fabrication and installation of a 12 inch pipeline to carry the well
fluids from the wells to the production station situated on the cliff tops
near Hawera;
- The fabrication and installation of an umbilical to carry power, controls
and chemicals from the production station to the wellhead platform; and
- The drilling of two world record length tunnels under the South Taranaki
cliffs to carry the pipeline and umbilical.
The Kupe Gas Project will now focus on completing the onshore facilities and
the production station in particular, to the agreed schedule and budget.
Importantly, the project has to date been free from significant injuries and
environmental incidents.
2/2
Completion of the offshore components of the project means the Ensco 107
drilling rig has been released from the Kupe location. This rig is currently
moving to a nearby location to drill the Momoho exploration well for the
Joint Venture.
Participants in the Kupe Gas Project are:
Origin Energy Resources (Kupe) Limited* (Operator) 50%
Wholly owned subsidiaries of Genesis Energy 31%
New Zealand Oil & Gas Limited (through its subsidiaries:
National Petroleum Ltd. 12.75%, Petroleum Equities Ltd. 1.25%
and Nephrite Enterprises Ltd. 1.00%) 15%
Mitsui E&P Australia Pty Ltd 4%
a wholly owned subsidiary of Origin Energy Limited
For further information please contact:
Media - New Zealand:
Rory Newsam
Tel: +64 460 2386
Mobile: +64 27 295 3809
Investors:
Angus Guthrie, Manager Investor Relations
Origin Energy
Tel: +61 2 8345 5558
Mobile: +61 417 864 255
Email: angus.guthrie@originenergy.com.au
The Ensco 107 jack-up drilling rig pictured during drilling operations at the
Kupe offshore platform.
End CA:00166007 For:NZO Type:MINE Time:2008-06-13:13:33:34