Global oil and gas heavyweight Technip, through its Perth-based Australian operations, has been named the 'preferred contractor' for the Kupe joint venture oil and gas project in the Taranaki region of New Zealand's North island.
Global oil and gas heavyweight Technip, through its Perth-based Australian operations, has been named the 'preferred contractor' for the Kupe joint venture oil and gas project in the Taranaki region of New Zealand's North island.
Specifically, the preferred contractor status refers to the construction of both the onshore and offshore components of the Kupe project.
It follows the announcement last month of Technip as preferred tenderer for the construction of the Kupe production station and other onshore infrastructure.
The Kupe joint venture consists of Origin Energy Resources Ltd, a wholly owned subsidiary of Origin Energy Ltd, as the operator and 50 per cent holder, Genesis Energy ( 31 per cent), New Zealand Oil & Gas Ltd (15 per cent) and Mitsui E&P New Zealand Limited, which has a 4 per cent interest.
The offshore component of the project - which has been added to the original scope of work - involves the design, construction and commissioning of the offshore platform, the platform to production station pipeline and the drilled shore crossing.
Subject to a final investment decision and if Technip is awarded the contract for both the on and off-shore components of the project, the operator and Technip will form a joint implementation team, which is expected to produce cost and logistic efficiencies for the project.
Technip Oceania is based in Western Australia and Malaysia and provides engineering and construction management services across Asia Pacific with access to the global resources of Technip, one of the world's largest project management and construction companies.
Last year Technip and Subsea 7 formed a joint venture company, based in Perth, to pursue subsea contracts in the Asia Pacific region.
It is competing for engineering, procurement, construction, installation commissioning and maintenance contracts for the subsea production and transportation of oil and gas.
Technip, in joint venture with JP Kenny, was also successful in securing the upstream contract at the $11 billion Gorgon gas project last year.
This contract includes the sub-sea facilities and pipelines, and the majority of work is being done in Perth.
The final investment decision on the Kupe project is expected later this year, and the awarding of the preferred contractor to Technip is an important step towards securing the work order.
THE FULL RELEASE APPEARS BELOW.
8 May 2006
Preferred Contractor for Kupe Gas & Oil Project
New Zealand Oil & Gas Limited advises that `preferred contractor' status has been awarded to
Technip Oceania Pty Ltd ("Technip") for construction of both the onshore and offshore components of
the Kupe gas and oil project.
This follows the announcement last month of Technip as preferred tenderer for the construction of the
Kupe production station and other onshore infrastructure.
The offshore component of the project - which has now been added to the original scope of work -
involves the design, construction and commissioning of the offshore platform, the pipeline connecting
the platform to the production station and the horizontal directionally drilled shore crossing.
Subject to a final investment decision and if Technip is awarded the contract for both the on and off-
shore components of the project, the operator and Technip will form a joint implementation team
(called an "Alliance Team").
The Alliance Team will be led by senior executives from the operator and Technip and resourced by
personnel from both companies.
Using the same contractor for both the on and off-shore components of the Kupe project, and
managing the construction under an alliance agreement, offers advantages through assisting in the
identification and realisation of synergies between the work programs for those components. This is
expected to lead to more effective execution of the project through cost and logistic efficiencies.
The Kupe joint venture believes having the project owners and the lead contractor working as one
team, with shared objectives and shared risk/reward arrangements, is the best way of managing the
currently challenging and competitive oil and gas construction market.
Technip Oceania is based in Western Australia and Malaysia and provides engineering and
construction management services across Asia Pacific with access to the global resources of Technip,
one of the world's largest project management and construction companies.
The award of a preferred contractor is another important step towards reaching a final investment
decision on the Kupe project later this half-year.
Participants are:
Origin Energy Resources (Kupe) Limited 50% (Operator, a wholly owned subsidiary of Origin Energy Ltd)
Genesis Energy 31%
New Zealand Oil & Gas Limited 15%
Mitsui E&P New Zealand Limited 4%