Following Mitsui’s decision to divest its 35% share of the project, AWE Limited, New Zealand Oil & Gas, and Pan Pacific Petroleum, via their subsidiaries, will increase their respective interests in the Tui area oil project for $US14.9 million.
The Oi prospect is a 4-way dip closure created by compactional drape over an underlying basement high, similar to the structures at the Tui, Amokura and Pateke Fields, and is targeting the same producing reservoir level. Located 12km northeast of Tui Field FPSO, the Oi prospect represents a prospective resource of 11 mmbo recoverable (gross, unrisked P50 estimate). In the event of a commercial discovery, existing excess FPSO productio ncapacity at Tui will enable the Oi Field to be tied-in relatively quickly and with low incremental operating costs. The well will be located in approximately 120m of water with the target horizon at 3200m subsea.
As part of the purchase agreement, Mitsui’s interest in the Oi exploration well will be assigned to AWE and New Zealand Oil & Gas.
Bruce Clement, managing director of AWE, said that the decision to secure an additional 15% in Tui was a straightforward one.
“Tui has performed exceptionally well over the years. Although a relatively mature asset, there is significant potential for the Pateke-4H infield development well and the Oi exploration well to add further production upside and extend the life of the project,” Clement said.
Both wells are planned to be drilled throughout December 2013-January 2014. Clement said that he expects to “have a better understanding of the potential upside in early 2014.”
AWE Limited is the operator with a 42.5%. Its partners in the joint venture are Mitsui E & P Australia Pty Ltd. 35%, New Zealand Oil & Gas, 12.5%, Pan Pacific Petroleum, 10%.
Image shows the Tui field, courtesy AWE.
Subscribe
