Kupe operator Origin Energy today announced it had chosen Technip as “preferred contractor” for construction of the offshore and onshore components of the project.

This follows the announcement last month of Technip as preferred tenderer for the construction of the onshore production station and other onshore infrastructure.

The offshore component of the project – added to the original scope of work – involves the design, construction and commissioning of the offshore platform, the pipeline and umbilical connection of the platform with the production station and the supervision of the horizontal directionally drilled shore crossing.

Origin and Technip will now form a joint implementation alliance team, subject to the final investment decision (FID) and confirmation of Technip being awarded the offshore and onshore contracts later this half-year.

The team will be led by senior executives from Origin and Technip and resourced by personnel from both companies.

“Using the same contractor for both the on and offshore components of the project, and managing the construction under an alliance agreement, offers enormous advantages to the project,” said Origin executive general manager for major development projects Andrew Stock.

“This arrangement will assist the identification and realisation of synergies between the work programs for each component of the project, resulting in cost and logistic efficiencies. It will lead to more effective execution of the project.

“We believe having the project owners and the lead contractor working as one team, with shared objectives and shared risk-reward arrangements, is the best way of managing the currently challenging and competitive oil and gas construction market.”

Technip, based in Western Australia and Malaysia and providing engineering and construction management services across the Asia-Pacific region, is one of the world’s largest project management and construction companies.

Stock said the awarding of the onshore and offshore ‘preferred contractor’ was another important step towards reaching the FID.

The Kupe partners are operator Origin Energy Resources, which holds a 50% stake, Genesis Energy (31%), New Zealand Oil & Gas (15%) and Mitsui E&P New Zealand (4%).