Fitzoy Engineering Group Ltd (FEGL), which won almost $30 million worth of work with the $1 billion Pohokura project, believes it and other New Zealand engineering firms stand a good chance of winning up to $200 million worth of work on the Kupe project.

FEGL managing director Peter White-Robinson says Kupe should provide more work for Taranaki and New Zealand companies than did Pohokura.

This is because the proposed Kupe production platform and onshore gas production station are bigger than those of the more northern Pohokura field, and the Kupe platform is further offshore, about 35km, requiring a greater investment in pipelines, than the 3km near-shore Pohokura platform.

The Western Australian Ausclad Group of Companies, in conjunction with FEGL, won the $A10 million contract for the Pohokura jacket, while New Zealand’s Fletcher Construction won the $NZ90 million design-construction contract for the onshore Pohokura production station.

FEGL also fabricated 17 pressure vessels and associated equipment, and installed all of this at the onshore station. Other Taranaki or New Zealand firms subcontracted to other phases of the Pohokura project.

White-Robinson said $100-200 million could be spent paying New Zealand companies and people involved in Kupe.

Last Thursday, the Kupe partners, headed by operator Origin Energy, agreed to proceed with the development of the field, with scheduled completion by mid-2009. The field is expected to produce about 20 petajoules a year of sales gas.

Recoverable Kupe reserves are 253.5PJ of gas, 14.7 million barrels of condensate and 1.06 million tonnes of liquefied petroleum gas, but with significant upside potential of up to 200PJ of gas and 1.7 million bbl of condensate.

French multinational Technip Oceania, which is involved in the offshore part of Pohokura, will have the lead management-contractor role in Kupe.

Origin Kupe project director Peter Ashford also said last Friday that nearly half the cost of the development would involve onshore work, including building the onshore production station and laying pipelines.

He said up to 600 construction workers could be needed at the peak of the Kupe development, which would include the unmanned platform and dual undersea pipelines to shore.

Meanwhile, the Gas Association of New Zealand has welcomed the positive Kupe final investment decision.

“Between Pohokura, Kupe and the recent Turangi-1 development, we will now have reserves of around 1000PJ of gas coming to market, which is around a quarter of the Maui reserves at its peak,” said GANZ chairman Michael Cummings.

“This, coupled with the withdrawal of some large petrochemical plants, will mean the reticulated gas market can continue to rely on indigenous fuels for many years. The development of Kupe is great news all round.”

The Kupe partners are operator Origin Energy Resources, which holds a 50% stake, Genesis Energy (31%), New Zealand Oil & Gas (15%) and Mitsui E&P New Zealand (4%).