SHIPPING firm BW Offshore has extended the lease of its FPSO Umuroa to Australian company AWE to the fourth quarter of 2017.

Situated on the Tui oil development on PMP 38158, 50 kilometres offshore Taranaki, the FPSO Umuroa operates on the field of the same name.

Under an agreement negotiated in 2008, the fixed term of the charter ended on 31 December 2015, with the Tui joint venture having seven years to extend the lease agreement – this being the second extension.

FPSO Umuroa is capable of handling up to 120,000 barrels per day of fluids, including 50,000 barrels of oil from the Tui project.

In its quarterly announcement, AWE said production from the Tui Area oilfields was down 12 per cent on the previous quarter, with 362,572 barrels (net of fuel oil consumed) produced at an average daily rate of 3,941 barrels of oil per day.

Tui oil sales totalled 398,744 barrels during the fourth quarter of 2015, with inventory at 127,452 barrels.

Project partner New Zealand Oil & Gas said production from the Tui field was down in the quarter, in line with natural field decline and its budgeted expectations.

“The Pateke 4H well continues to produce above operator expectations in terms of oil production and with slower water cut development,” the company said.

AWE holds a 57.5% operating stake in the Tui area oilfields, while New Zealand Oil & Gas holds 27.5% and Pan Pacific Petroleum holds the remaining 15%.