NZ Oil & Gas (NZO)

**arjay** · 02-05-2010, 06:51 PM

Some time ago, if my memory serves me, NZO said that the JV was going to build a gas line to link up with Maui to deal with the flaring problem. What happened to that idea I wonder?

**Lion** · 02-05-2010, 07:17 PM

Wilkins - the announcement on Friday says Tui SW 1 is a possible gas injection site . . .

"At the conclusion of drilling, Tui SW will be cased and suspended as a possible future gas injection well."

But the rest of the ann talks about possible oil at SW1, in the Kapuni F10 sand, which has oil at Tui, and also about future horizontal drilling and a tie back to the FPSO.

So, it's still not clear to me exactly what this well is for. Can the company clarify please?

The exciting hope is that these new wells will prove to be part of a much larger pool of connected Tui oil.

Arjay, I recall the possibility of a Maui connection too, but I don't think any more has been said.

**bermuda** · 02-05-2010, 08:21 PM

Originally Posted by arjay

Some time ago, if my memory serves me, NZO said that the JV was going to build a gas line to link up with Maui to deal with the flaring problem. What happened to that idea I wonder?

I asked David Salisbury at the O&G conference question time as to whether they could tie in to the Maui facilities if they discovered too much gas. He answered that they didn't consider it a problem as the new drills were likely to be oil. Good luck NZO. They need some good news. I have a good feeling about these drills....but I have had these feelings before.

**mattyroo** · 02-05-2010, 08:54 PM

Originally Posted by bermuda

I asked David Salisbury at the O&G conference question time as to whether they could tie in to the Maui facilities if they discovered too much gas. He answered that they didn't consider it a problem as the new drills were likely to be oil. Good luck NZO. They need some good news. I have a good feeling about these drills....but I have had these feelings before.

What about the associated gas that they will get off these new drills, if they contain oil???? Associated gas is a given in these fields.

More oil = more gas, that they must utilise (gas lift - which as I stated earlier is a very minor quantity), dispose of, either by re-injection or flaring.

I would suspect that they are already at the maximum gas handling capability of the vessel, based on the amount they are flaring and other things I have heard around the traps..... So, their only option is to flare more. Building in facilities to export the gas to another installation is not as simple as it sounds, and would likely require the vessel to return to Singa's - although Prosafe have recently done this type of work at the wellhead on the Espoir.

**the machine** · 02-05-2010, 09:22 PM

basis oil is discovered in tui SW then why tie the production into Tui when it could be tolled through Maui, along with all the gas that is reinjected.

M

**bermuda** · 02-05-2010, 09:24 PM

Originally Posted by mattyroo

What about the associated gas that they will get off these new drills, if they contain oil???? Associated gas is a given in these fields.

More oil = more gas, that they must utilise (gas lift - which as I stated earlier is a very minor quantity), dispose of, either by re-injection or flaring.

I would suspect that they are already at the maximum gas handling capability of the vessel, based on the amount they are flaring and other things I have heard around the traps..... So, their only option is to flare more. Building in facilities to export the gas to another installation is not as simple as it sounds, and would likely require the vessel to return to Singa's - although Prosafe have recently done this type of work at the wellhead on the Espoir.

Matty,
That is why I asked the question in open forum. David Salisbury seemed pretty relaxed with the overall position. I will be keeping a close eye on these drills. Good luck NZO.

**Chris Roberts** · 03-05-2010, 09:13 AM

Originally Posted by Lion

Wilkins - the announcement on Friday says Tui SW 1 is a possible gas injection site . . .

"At the conclusion of drilling, Tui SW will be cased and suspended as a possible future gas injection well."

But the rest of the ann talks about possible oil at SW1, in the Kapuni F10 sand, which has oil at Tui, and also about future horizontal drilling and a tie back to the FPSO.

So, it's still not clear to me exactly what this well is for. Can the company clarify please?

The Tui SW-1 well and the Kahu-1 well which will follow are both vertical exploration wells. They have never been planned as producing wells, which would need to be horizontally drilled given the nature of the Tui area reservoirs. That is why the announcement says that a successful discovery would likely be developed by a horizontal well tied back to the existing Tui facilities.
The joint venture will consider using Tui SW-1 as a future gas injection well. It's a useful and prudent option to have. There is an existing consent for the Tui area fields which allows gas flaring, but depending on future production levels, particularly if a new discovery is tied-in, an alternative option for some gas may be needed if the consent limit is reached.

**bermuda** · 03-05-2010, 10:20 AM

Originally Posted by Chris Roberts

The Tui SW-1 well and the Kahu-1 well which will follow are both vertical exploration wells. They have never been planned as producing wells, which would need to be horizontally drilled given the nature of the Tui area reservoirs. That is why the announcement says that a successful discovery would likely be developed by a horizontal well tied back to the existing Tui facilities.
The joint venture will consider using Tui SW-1 as a future gas injection well. It's a useful and prudent option to have. There is an existing consent for the Tui area fields which allows gas flaring, but depending on future production levels, particularly if a new discovery is tied-in, an alternative option for some gas may be needed if the consent limit is reached.

Thanks Chris,
That makes sense. Tui SW... an exploration well. Good luck with these two drills and thanks again for your clarification. Some people were getting confused.