Media reports have essentially repeated what EnergyReview.Net said months ago - that OMV is interested in taking a controlling stake in New Zealand's second largest undeveloped gas resource, while Kupe gas could be processed using Swift Energy's Rimu production facilities.
OMV Australia managing director Wolfgang Zimmer told EnergyReview.Net last November that OMV was actively looking to get involved in Kupe and had been talking with present operator Genesis Power. Although OMV had not done a full technical review, it was interested in taking a significant stake and becoming Kupe operator, said Zimmer.
Although Swift Energy is declining to comment, it is known the company might take a small stake in Kupe, though not a majority share because of its lack of offshore experience. However, its onshore Rimu production station is ideally placed to receive the raw gas stream from the more southern offshore Kupe, with its handling capacity easily being able to be doubled to process 5000 or more barrels of liquids a day.
OMV, with its extensive onshore and offshore experience, is better placed to take over as operator.
However, such a move would be sure to raise industry concerns, and possible complaints to the Commerce Commission about market dominance, as OMV would then have major stakes in the Pohokura and Kupe gas fields, as well as in the Maari oil field. OMV is still finalising its takeover of Preussag Energie's worldwide exploration assets, including a 35.86% interest in Pohokura.
The other Kupe partner, New Zealand Oil and Gas, wants to increase its 19% stake in the field it discovered 17 years ago, though not to take a controlling interest.
"NZOG is interested in acquiring more equity in Kupe, though we would not be happy to take a large chunk, say an additional 40 percent," company finance manager Gordon Ward told EnergyReview.Net from Sydney today.
"NZOG would also be concerned about any possibly anti-competitive issues that could arise if a couple of other parties gained operatorship," he added.
Ward declined to specify which parties he was talking about, though it is common industry knowledge that having Maui, Kapuni, McKee and Mangahewa operator Shell Todd Oil Services involved in Kupe would cause a storm of protest.
Earlier this week Energy Minister Pete Hodgson said the government was to finally sell its "free carry" interest in Kupe and proposed selling its 11% stake to Genesis Power.
