Kupe operator Origin Energy yesterday said following a competitive tender process, Worley had won the main FEED contract which would better define the engineering parameters to be used in the construction of the offshore platform, pipeline to shore and gas processing facilities.
The preferred development option would see about 20PJ of sales gas produced, along with 1.6 million barrels of condensate, per annum from the second quarter of 2007.
Origin Energy said it continued making good progress with the technical studies associated with the development including:
• Completion of a detailed seabed testing at the platform location.
• Completion of a seabed survey to identify a number of potential offshore pipeline routes.
• Commencement of discussions with relevant government authorities and local councils to obtain approvals necessary to allow the development to occur.
• Negotiations with owners of existing gas processing infrastructure to determine the viability of their providing a service to process the Kupe gas once it comes ashore.
As previously reported by EnergyReview.Net, Origin said the overall development cost had now risen to NZ$350-400 million. Initially NZ$250 million was expected to be needed for the construction of the platform, pipeline and gas plant along with the whole-of-life costs for drilling the first three wells, with two additional wells planned later, and the final abandonment of the wells at the end of their useful life.
However, Origin cautioned that at this early engineering stage, cost estimates were very approximate.
Last August New Plymouth’s Transfield Worley did an initial engineering study of Kupe as a precursor to the FEED studies and reviewed concepts for the development of the central field area and identified a range of onshore processing, transportation and storage options.
“Everything is on track to provide sufficient technical, environmental and approval information for the joint venture to make its decision to proceed with the development by June 2005,” said Origin BassGas general manager Geoff Wearne.