It is known Austrian giant OMV Petroleum was interested in getting involved in Kupe, as is Todd Energy, with Shell Todd Oil Services as operator. Existing Kupe partner New Zealand Oil and Gas has also expressed an interest in increasing its 19% stake, though not taking over as operator.

However, EnergyReview.Net now understands that at least one company active in Australia was among the six which last month submitted a Request for Qualifications to Genesis.

One of the top candidates would be Santos, which is rumoured to already have board approval to try for Kupe. It is understood some Santos staff visited New Zealand about six weeks ago to discuss Kupe. Another would be Newfield Exploration, which operates the Challis and Jabiru offshore fields in the Timor Sea.

A third candidate could be Apache Energy, which has long been interested in crossing the Tasman and getting involved in this country's small but vibrant energy industry.

Genesis Power chief executive Murray Jackson recently told ERN he was very pleased with the level of interest in Kupe and the companies' desire to complete due diligence in time to enable Genesis to appoint an operator by October.

Genesis wanted the successful bidder to take a probable 40% stake in Kupe, as well as taking over from Genesis as operator, with a view to having the marginal 1986 discovery developed by 2006-07.

Jackson denied recent rumours that Genesis was proceeding with the development of Kupe almost in tandem with the larger Pohokura gas-condensate field so as to provide some "competition" to Pohokura gas and keep the lid on gas prices, which major Pohokura partner Shell New Zealand recently said could go as high as $NZ6 per Gigajoule.

"We cannot allow ourselves to be dictated to regarding talk of limited reserves and development delays. We have more customers for gas than we have gas and we have to continue with Kupe to secure gas supplies for and our investment in e3p," said Jackson, referring to the planned second power station at Huntly, known as e3p, a 365MW combined-cycle gas turbine station which Genesis wants to come into operation by 2006.

He said Genesis could not count on sufficient Pohokura gas being available from 2006 to satisfy the market, particularly for electricity generators. Therefore Genesis had to proceed with the development of Kupe as "insurance cover".

An added twist was that Genesis had gas supply contracts with Contact Energy and NGC for Maui gas through until 2009, though how those contracts would be fulfilled in the light of the reduced Maui reserves still had to be worked out.

There is now less than 350PJ of economically recoverable gas left in Maui and it is known Contact has reduced output at its Otahuhu, Auckland, and TCC, Stratford, power stations in an effort to conserve its remaining Maui entitlements.

This situation is likely to continue at least until agreed reduced offtake profiles are in place or, as ERN revealed earlier this month, rumours of a special Pohokura-for-Maui deal prove true and Pohokura gas "substitutes" for any shortfalls in Maui

Kupe is New Zealand's second largest undeveloped petroleum resource after Pohokura and has probable reserves of approximately 290 Petajoules of gas and 16 million barrels of liquids.