“Although the joint venture still has to fine-tune capital costs and finalise engineering exercises, including whether we build our own onshore production station or use existing facilities, this is as close to certain as you can get regarding our involvement,” NZOG general manager Gordon Ward told EnergyReview.Net from Wellington this morning.

NZOG and Genesis directors yesterday signed the detailed gas sales and funding contract, which has NZOG selling 35PJ of Kupe gas to Genesis and securing 85% of NZOG’s development costs, up to a cap of NZ$40 million.

“We have now achieved the majority of funding required and we do not anticipate any problems raising the rest. We also anticipate the final investment decision to be taken about next June, ” Ward added.