A FURTHER upgrade in developed reserves in the Kupe gas and light oilfield off Taranaki, New Zealand has been announced by New Zealand Oil & Gas, following analysis by the joint venture.
The 15.29 per cent upgrade from 5.22 million barrels of oil equivalent to 6.02 million barrels is further to a 34.7 per cent increase announced in October last year.
As a result of reservoir simulation uncertainty modelling, New Zealand Oil & Gas concluded a further increase in proved and probable developed reserves of 15.29%.
The group advised the upgrade includes an extra 3.6 petajoules of gas and 16.69 kilotonnes of liquefied petroleum gas (LPG) compared to 2P developed reserves at 31 December 2015.
Chief executive Andrew Knight said the reserves upgrade provided additional volume from within the existing development.
“It also provides further security that contracted volumes can be met without needing significant additional capital,” he said.
In addition to the upgrade in developed reserves, technical work is nearing completion to assess options for developing the reserves, of which New Zealand Oil & Gas has a share of 3.2 million barrels.
New Zealand Oil & Gas said the Kupe joint venture has not made a final investment decision on the undeveloped reserves at this stage, New Zealand Oil & Gas holds a 15% interest in Kupe, and the other Kupe partners are the operator Origin Energy (50%), Genesis Energy (31%) and Mitsui (4%).