Chief executive Murray Jackson says in the report, which was released yesterday, (Monday) that Genesis plans to tender for an operator for the Kupe field later this year and to sell down part of its majority interest in the Kupe licence off south Taranaki.

EnergyReview.Net reported Jackson in May saying that Genesis (which holds a 70% stake in Kupe) was talking to a number of oil companies about taking over from Genesis as Kupe operator.

He said then that it was likely the government would sell its 11% "free carry" to a potential operator before any commitment was made to develop Kupe, which holds about 260 Petajoules of gas and 15 million barrels of liquids. Genesis was hopeful a field development plan could be started in 2004.

However, Jackson later said that process had been delayed by the appointment of Maui adjudicator Netherland Sewell and Associates International. He said the Kupe partners, including any new operator, would want to know the outcome of the Maui redetermination. Shell New Zealand believes Maui contains about 285PJ less gas than first thought and will run out 2.3 years earlier than the contracted 2009.

Jackson said he expected Genesis would be in a position by next June to decide how and when to proceed with any Kupe development, which could cost $US120 million or more.

Kupe is an alternative to buying gas from the 1tcf-plus Pohokura gas-condensate field off north Taranaki. Tenders for Pohokura gas supply contracts are expected from next year.

Jackson also confirmed what ERN reported last month - that Genesis was in discussion with Mitsubishi Heavy Industries, as the preferred contractor for the new 360MW Huntly combined-cycle power station which will use about 20PJ of gas a year. The main contracts need to be awarded by next July to ensure the 30-month construction phase could be finished in time for the scheduled December, 2005, commissioning.