First shipment of Kupe oil close
The first shipment of light crude oil from the Kupe project is due to leave Port Taranaki next week.The 120,000 to 180,000 barrel shipment on tanker British Chivalry, due in port on Sunday, was contracted to BP and was going to the Kwinana Refinery in Aus
The first shipment of light crude oil from the Kupe project is due to leave Port Taranaki next week.
The 120,000 to 180,000 barrel shipment on tanker British Chivalry, due in port on Sunday, was contracted to BP and was going to the Kwinana Refinery in Australia, project operator Origin Energy said today.
Kupe has been producing natural gas, LPG and light crude since the wells were opened in early December.
The light crude has been trucked from the gas processing plant at Hawera and stored at the Kupe tank farm at Omata, near Port Taranaki.
Origin Energy New Zealand general manager Chris Bush said production of gas and light crude had been going as expected since commissioning started, with the shipment being a significant milestone for the project.
The complex offshore and onshore Kupe production system was operating successfully, and in the next two months Origin would continue to systematically test remaining plant and equipment, he said.
When fully operational Kupe is expected to provide 10-15 percent of this country's annual gas demand and more than half the LPG demand.
In the next 15 to 20 years about 254 petajoules of natural gas are expected from the project, along with 1.1 million tonnes of LPG and 14.7 million barrels of light crude.
The crude will be exported to refineries in the Australasian and South Pacific regions.
Partners in Kupe are Origin with 50 percent, Genesis Energy with 31 percent, New Zealand Oil&Gas with 15 percent, and Mitsui E&P Australia with 4 percent.
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