AWE hands out $NZ6m Tui contract

OPERATOR Australian Worldwide Exploration (AWE) says it has awarded Fitzroy Engineering Group a $NZ6 million ($5.3 million) contract to make subsea equipment needed for its Tui oil project in New Zealand.
AWE hands out $NZ6m Tui contract
AWE hands out $NZ6m Tui contract
AWE hands out $NZ6m Tui contract
AWE hands out $NZ6m Tui contract
AWE hands out $NZ6m Tui contract

Under the contract, Fitzroy will produce much-needed mid-water arches and associated equipment for the $US225 million ($A295 million) development project in Taranaki Basin, AWE said.

“The Tui area offshore oil project requires the use of flexible flowlines to connect four production wells on the sea floor to a Floating Production Storage and Offloading (FPSO) vessel that will process the oil,” it said.

“In order to reduce the stresses on the flowlines as they rise 125 metres from the sea floor to the moored FPSO, they are draped over the mid-water arches, so named as they are suspended at a mid-water depth.”

The arches consist of guides and clamps for the flowlines that are supported on a steel frame, which also houses buoyancy tanks.

Fitzroy is expected to deliver the completed equipment in January next year.

First oil production is expected from the Tui project by June.

AWE estimates proven and probable field reserves are 27.9 million barrels. The project facilities are designed for a maximum initial oil flow rate of 50,000 barrels a day.

The company expects to complete the Tui area development by end of the second quarter next year.

It has a 42.5% interest in the project along with joint venture partners Mitsui & Co. (35%), New Zealand Oil and Gas (12.5%) and Pan Pacific Petroleum (10%).

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