Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Increase In Reserves For Tui

22 November 2007

Increase In Reserves For Tui

Oil Reserves for the Tui Area Oil Project have been increased to 41.7 million barrels, 30% above the previous estimate and nearly 50% above pre-development predictions.

The new figure for proved and probable (2P) reserves compares with estimated reserves of 27.9 million barrels on which the Tui Area Oil Project in off-shore Taranaki was first sanctioned, and an interim re-estimate of 32 million barrels following completion of the development drilling campaign.

New Zealand Oil and Gas Ltd (NZOG) has a 12.5% share of the Tui Area Oil Project. NZOG’s share of the reserves has increased from 3.5 million barrels (pre-development) to 5.2 million barrels.

Tui oil is a light sweet crude that is generally sold, with freight and quality differentials, against the Tapis benchmark crude, which has recently surpassed US$100 a barrel. The reserves upgrade for NZOG of 1.7 million barrels, at current oil prices and exchange rates, has a gross value of more than NZ$200 million.

The increase in reserves follows a reassessment of the field by the operator (AWE) based on interpretation of re-processed 3D seismic, a more detailed assessment of the Kapuni reservoir and the integration of the production data from the fields since production began on 30 July 2007. The increased reserves assume production from the existing four wells, plus the completion of an additional development well in the Tui oil field, Tui-4H. Preliminary planning for drilling of this well has begun, with drilling targeted for 2009.

Since the start of production on 30 July 2007, the Tui Area Oil Project has produced approximately 4.4 million barrels of oil. Recent production rates of up to 50,000 barrels of oil per day have been achieved, with the current well capacity still substantially higher than the processing capacity of the FPSO Umuroa. Water is being produced from the field, but at substantially lower rates than expected. Based on the current reservoir and facility performance and the upgrade in reserves, AWE has revised the Tui gross oil production for the year to 30 June 2008 up from 10 million barrels to approximately 11 million barrels (approximately 1.4 million barrels net to NZOG).

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news