Tui area fields start flow off New Zealand

The Tui Area Development in the offshore Taranaki basin of New Zealand has come on stream 19 months after the final investment decision and some 3 years after discovery.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Aug. 1 -- The Tui Area Development in the offshore Taranaki basin of New Zealand has come on stream 19 months after the final investment decision and some 3 years after discovery.

The development encompasses three adjacent oil fields about 50 km offshore. It includes production from four subsea wells incorporating extended horizontal sections in the reservoirs and connected to the Umuroa floating production, storage, and offloading vessel.

Project operator Australian Worldwide Exploration Ltd. (AWE), Sydney, says the production will be ramped up to a peak rate of 50,000 b/d during August and is expected to total around 10 million bbl in the first year.

Proved and probable reserves are estimated at 28 million bbl.

When fully commissioned, Tui will be New Zealand's largest oil producing operation.

The final cost stands at $269 million (US), 10% more than the previous estimate. Much of the overrun has been due to bad weather affecting the offshore construction activities.

Participants are AWE 42.5%, Mitsui E&P New Zealand Ltd. 35%, New Zealand Oil & Gas Ltd. 12.5%, and Pan Pacific Petroleum NL 10%.

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