Oil and gas operator TAG Oil Ltd., reports that pipeline construction connecting the Cheal-E development area to TAG’s main Cheal-A production infrastructure is nearly complete. The TAG-led, NZ$4.5 million (US$3.3 million) project was completed on budget and ahead of schedule.
“The new pipeline is an important addition to TAG’s overallinfrastructure in the Taranaki region,” said Max Murray, TAG Oil’s New Zealand Country Manager. “It allows us to significantly reduce operating costs even while generating additional revenues, and it gives us the ability to quickly monetize future oil and gas wells drilled in the Cheal-E development area.”
Cheal-E to Cheal-A Site Pipeline
The 4” pipeline connecting the new Cheal-E site to TAG’s Cheal-A site production facility is undergoing pre-commissioning and rigorous testing now. It will shortly, over the next week, move into the commissioning phase, at which point a three-phase well stream of fluids (oil, gas and water) will be processed through the Cheal-A site production facility.
In addition to the pipeline installation, an 11 kV HV electrical cable and a fibre optic cable have been installed to improve the power supply and communications between the Cheal-E and the Cheal-A production sites.
“Along with the benefits of increased production revenue from the sale of gas, we are very pleased to eliminate the need to flare the solution gas at Cheal-E onsite,” Max Murray further commented. “The additional associated gas will be sold under an existing Gas Sales Agreement.”