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Kupe Drilling Contract Awarded for up to 6 Offshore Wells
2 February 2006 - Origin Energy awards contract to ENSCO to drill up to six wells with newly-built jack-up rig for Kupe gas-condensate field project.
Kupe gas project operator Origin Energy Resources (Kupe) Ltd has awarded a contract for three development wells and options for three more wells to Dallas-based rig operator ENSCO Oceanics International.
Origin Energy also said that momentum was building on the offshore south Taranaki gas-condensate project with bids having been received for construction of the onshore production station west of Hawera.
The wells are to be drilled by a new jack-up drilling rig, the ENSCO 107, which was recently launched and commissioned in Singapore. It will complete three projects in South East Asia, before mobilising to New Zealand in the first quarter of 2007.
Origin Energy said the drilling programme is planned to commence in the first half of 2007 and extend for approximately six months.
The ENSCO contract includes options to drill up to three additional wells either on Kupe or elsewhere, as well as cancellation provisions in the event that the project does not proceed.
The joint venture partners in the Kupe project are now expected to reach a final investment decision in the first half of 2006. Once approved, it is expected that commercial gas and liquids production would commence during 2008.
“The award of the drilling contract is a key project milestone. We're pleased to have secured a first-class rig that will be well tested in the region prior to its arrival in New Zealand,” said Origin's executive general manager for major development, Andrew Stock.
The level of interest shown in the onshore component from international contractors is also very promising, Mr Stock said. Bids for the onshore component, which includes construction of the production station and associated pipelines — are undergoing evaluation.
ENSCO announced, in a release posted on its website in late January, that it taken delivery of the ENSCO 107 jack-up rig from the Keppel-FELS shipyard in Singapore one month ahead of schedule and on budget. The 107 rig was described as a ultra-high specification rig.
The Kupe joint venture comprises: Origin Energy Resources (Kupe) Ltd 50%, Genesis Energy 31%, New Zealand Oil & Gas Ltd 15%, and Mitsui E&P (New Zealand) Ltd 4%.
