NZ Oil & Gas (NZOG) reports that technical work has been completed on the potential second phase of development at Kupe.
The company said a commercial review and approval by the joint venture parties is expected to be concluded prior to further updates on reserves, activities and timings as part of the annual report.
NZOG sad Kupe gas production in the June quarter was up on both the previous quarter and the comparable quarter a year ago, due to increased offtake requirements.
However, Kupe LPG & condensate production was down in the quarter due to repairs to the Amine system. The Amine system is used to remove carbon dioxide from the gas prior to onward sales. The system must be routinely taken offline every two years for inspections, during which LPG yields are reduced as they supplement the sales gas energy. This system requires less gas input to the plant, simultaneously reducing condensate production.
However, as part of this inspection a number of corrosion issues were identified and the operator is progressing remedial actions in conjunction with regulatory requirements. It is currently anticipated that this will be resolved in September.