New Zealand Oil & Gas Ltd. has sold its 15% interest in Kupe oil and natural gas field offshore Taranaki basin in the North Island to the country’s largest electricity retailer Genesis Energy Ltd. for $168 million (NZ).
The acquisition takes Genesis’ stake in Kupe to 46%. Australian company Origin Energy Ltd., the field’s operator, has 50% and Mitsui E&P 4%.
The additional interest will boost Genesis’ share of reserves by 160,000 bbl of oil and 13,000 tonnes of LPG.
The Kupe partners earlier this year renewed their intentions to look for ways to develop the field’s untapped reserves.
The field, in 35 m of water, was discovered in 1986 but was not brought on stream until December 2009. Production is via three wellheads on an unmanned fixed platform feeding into a 30-km pipeline to a shore processing plant near Hawera.
Initial 3P reserves were put at 18 million bbl of oil and condensate and 437 petajoules of gas.
The sale needs to be ratified by NZOG shareholders at an extraordinary meeting in December. It also requires ministerial approval.
Commissioning of Kupe field began in late 2009. Over its lifespan, Kupe is expected to provide 6.6 billion cu m of gas, 1.1 million tonnes of LPG, and 14.7 million bbl of light crude (OGJ Online, Dec. 4, 2009).