Mitsui increases its share of Tui project

Mitsui & Co. Ltd. will increase its ownership to 35% from 12.5% in the Tui development project off New Zealand.

Feb. 14, 2006

Eric Watkins
Senior Correspondent

LOS ANGELES, Feb. 14 -- Mitsui & Co. Ltd. will increase its ownership to 35% from 12.5% in the Tui development project off New Zealand.

Mitsui will pay about $50 million to buy 22.5% out of New Zealand Overseas Petroleum Ltd.'s (NZOP) 45% interest.

Wholly owned subsidiary Mitsui E&P New Zealand Ltd. will spend $140 million, including the cost of the additional interest, to help put Tui area oil fields on production in mid-2007.

The Tui-Amokura-Pateke fields have estimated reserves of 27 million bbl of oil and are expected to produce 50,000 b/d at peak from subsea wells tied back to a floating production, storage, and offloading vessel (OGJ Online, Oct. 29, 2004).

Contact Eric Watkins at [email protected].