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The Tui Area Oil Project presently constitute three fields (Tui, Amokura and Pateke) with oil produced from four horizontal wells which flow to a Floating Production Storage & Offloading vessel (‘FPSO’ – the Umuroa) which is permanently moored offshore in the waters above the Tui fields. The oil is processed on the Umuroa before being exported via export tankers destined for refineries on Australia’s Eastern Seaboard, South-East Asia and Hawaii.
A total of 14.2 million barrels of oil (Pan Pacific Petroleum NL (‘PPP’) share 1,420,000 barrels) was produced in the 11 months to 30 June 2008, averaging approximately 42,400 barrels/day over that period. Production for the 2008/9 financial year is currently estimated at 9.0 million barrels (PPP 900,000 barrels).
As production performance significantly exceeded initial expectations, a reserves review was carried out, resulting in an increase in initial proven and probable reserves to 50.1 million barrels as at 30 June 2008, compared with a predevelopment estimate of 26.8 million barrels.
Also, in response to the strong production performance, the Tui joint venture partners extended the firm period of the FPSO contract to end 2015, and added one year options beyond that to guarantee availability of the FPSO until the end of 2022. This FPSO lease extension enables the Tui joint venture to produce substantial additional oil from the Tui fields and to maximise the value of any further oil discoveries in the area, which may result from drilling of up to five prospects which are close to the existing infrastructure.