Mitsui Increases Stake in Tui Oil Field to 35%

The New Zealand energy subsidiary of Japan’s second largest trading house, Mitsui & Co Ltd, said it has increased its stake in the Tui oil exploration project in offshore Taranaki from 12.5% to 35%.

Mitsui E&P New Zealand Ltd, has agreed to pay New Zealand Overseas Petroleum approximately US$50 million for an additional 22.5% interest in the Tui mining permit PMP 38158. The deal also includes a 22.5% interest in the Hector South Sub Block of PEP 38483, near the Tui field.

Last month, one of the other Tui partners, Australian Worldwide Exploration Ltd, that it had acquired a further 22.5% interest in the permit when it brought all of the shares in New Zealand Overseas Petroleum.

Mitsui & Co said it will spend about US$140 million, including the cost of its additional 22.5 % interest, to help put Tui offshore oil fields into commercial production from mid-2007.

Mitsui said it is seeking to enhance its upstream business amid surging crude oil prices.

Mitsui participates in many other projects with AWE in the Oceania region, and this acquisition of additional interests by both Mitsui and AWE will further strengthen the relationship between the two companies.

Mitsui considers this acquisition a further growth of high quality upstream assets in the region, and aims to pursue continuous development and production of natural resources in the future.

The interest holders in the Tui Area oil project will now be: operator, New Zealand Overseas Petroleum Ltd (now an AWE subsidiary) 22.5%; Mitsui E&P New Zealand, 35.0%; AWE, 20.0%; New Zealand Oil & Gas Ltd, 12.5%; and Pan Pacific Petroleum Ltd, 10.0%.

The Tui oil fields have estimated recoverable oil reserves of 27 million barrels with a peak output of 50,000 barrels a day.