Document Actions
Kupe field’s condensate reserves rise by 27%, gas up 8%
21 July 2010 - Kupe gas and condensate field reserves have increased substantially following a detailed reserves review by operator Origin Energy over six months since first production began at the offshore south Taranaki field.
Sources: Origin Energy, NZOG and Lindsay Clark
Origin said that initial proved and probable (2P) condensate (light oil) reserves increased by 27% on pre-drill estimates while sales gas reserves increased by 8% and LPG reserves by 5%.
One of the Kupe partners NZOG said the outcome of the reserves review is very good news.
“The light oil provides the greatest financial return of the three products, so confirmation that the field is more ‘liquids-rich’ than initially estimated is particularly significant, NZOG chief executive David Salisbury said.
“At current prices, the additional NZOG reserves have a sales value of nearly NZ$100 million.”
For the whole Kupe partnership, the revision will mean an addition of over NZ$600 million to the project’s value at current prices.
Origin Energy said the reserves review of PML 38146 has integrated new petrophysical, fluid sample and well test information from development wells drilled in 2008 with full field static and dynamic reservoir models. These models have been updated to enable matching of the new technical information with limited early field production data.
As a result of this modelling initial, 2P reserves have been revised to 74.2 million barrels of oil equivalent or 431 petajoules of gas equivalent (PJe) consisting of 273 PJ of sales gas, 1,114,000 tonnes of LPG and 18.6 million barrels of light oil.
Production since commissioning commenced on 3 December 2009 until 30 June 2010 has totalled 2.9 million BOE (17 PJe) or (10 PJ sales gas), 32,000 tonnes of LPG and around 1 million barrels of light oil.
The remaining 2P reserves at 30 June 2010 are therefore 71.3 million BOE (414 PJe), (263 PJ sales gas, 1,082,000 tonnes of LPG and 17.6 million barrels of light oil).
Origin Energy said the reserves review has also clarified the anticipated requirements for additional capital expenditure later in the field’s life.
It is now expected that this will include two additional production wells and full field compression. These costs and precise timing will be refined over the following 12 months.
Origin Energy’s New Zealand general manager Chris Bush said the significant increase in field reserves will enhance Kupe’s ability to make a significant contribution to New Zealand's gas and LPG needs for the next 15-20 years.
2010 NZ Petroleum Conference - More news - Sign up for free newsletters
