New Zealand media reports this week have confirmed what EnergyReview.Net said earlier this year - that Genesis expected to be able to announce the lead contractor for its new 400MW gas-fired power station at Huntly and the company to develop the Kupe field, which would be the station's preferred gas source, by mid-2002.
Industry commentators say several existing players in the New Zealand energy scene could be interested in acting as operator for Kupe, a marginal field which has lain undeveloped in shallow water about 30km off the Taranaki coast since 1986.
Top of the list would be Maui and Kapuni operator Shell Todd Oil Services, while 19% Kupe stakeholder New Zealand Oil and Gas might also be interested in helping develop the field it discovered 16 years ago. Small service firms, such as Vause Oil Production Services which runs the unmanned onshore Ngatoro field on behalf of NZOG, may also express interest.
However, it is the Royal Dutch Shell 50% ownership of, and effective running of, STOS which could cause the New Zealand Commerce Commission to scratch its head over any STOS involvement in Kupe. Shell was required to divest all interests in Kupe last year when it took over Fletcher Challenge Energy.
Genesis wants a Kupe development plan finalised by the end of this year and the field onstream by 2005, soon after its new Huntly station is scheduled to start operating. A full development option for Kupe, which contains about 260PJ of gas and 15 million barrels, could cost as much as $US250 million.
