AWE extends FPSO charter

Rick Wilkinson

OGJ Correspondent

HOUSTON, May 23 -- Sydney-based Australian Worldwide Exploration Ltd. negotiated a 14.5-year extension on its charter for the FPSO Umuroa for its Tui oil field in the offshore Taranaki basin of New Zealand.

The company says the extension will allow at least 5 million bbl of additional oil to be recovered from the reservoirs.

The contract extension with vessel operator Prosafe Production will be in stages. The fixed term charter was extended by 3.4 years to December 2015. After that date, the Tui JV will have seven 1-year options to extend, which could see the charter running until December 2022.

AWE says the field's four production wells are performing well, and total production remains about 45,000 b/d despite rising water production. Studies are underway to increase water-handling capacity on the vessel to 150,000 b/d. Since coming on stream at the end of July last year Tui has produced 12.6 million bbl.

Full operating cost of the charter for the next financial year (ending June 2009) is expected to be $61 million. This rate will then reduce annually with the expected field production profile.

Tui is operated by AWE with 42.5% interest. Mitsui E & P New Zealand has 35%; New Zealand Oil and Gas 12.5%; and Pan Pacific Petroleum 10%.

Related Articles

White House eyes steps to curb oil, gas methane emissions

03/29/2014 The White House announced additional steps to reduce methane emissions from oil and gas operations as part of a broader strategy. They included reg...

Sinopec reveals Fuling field production capacity goals

03/25/2014 Sinopec plans to develop Fuling shale gas field in southwestern China to a production capacity of 10 billion cu m (bcm)/year by 2017, the company s...

IEA: Global oil demand revised upward on stronger data

03/24/2014 Global oil demand in 2013 rose by 1.3 million b/d year-over-year to 91.3 million b/d, according to the latest, near-complete set of demand data for...

Santos brings Peluang gas development on stream


Santos Ltd., Adelaide, has started natural gas production from its Peluang development offshore the Indonesian island of Java.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected