Origin announces preferred contractor for Kupe

Origin announces preferred contractor for Kupe Gas Project

Origin Energy Resources (Kupe) Limited ("Origin"), as operator of the Kupe Gas Project in New Zealand, has awarded 'preferred contractor' status to Technip Oceania Pty Ltd for construction of both the onshore and offshore components of the project.

This follows the announcement last month of Technip as preferred tenderer for the construction of the production station and other onshore infrastructure.

The offshore component of the project - which has now been added to the original scope of work - involves the design, construction and commissioning of the offshore platform, the pipeline and umbilical connecting the platform to the production station and supervising the Horizontal Directionally Drilled (HDD) shore crossing.

Subject to a final investment decision and if Technip is awarded the contract for both the on- and off-shore components of the project, Origin and Technip will form a joint implementation team (called an Alliance Team).

The team will be led by senior executives from Origin and Technip and resourced by personnel from both companies.

"Using the same contractor for both the on- and off-shore components of the project, and managing the construction under an alliance agreement, offers enormous advantages to the project," said Origin's Executive General Manager for Major Development Projects, Andrew Stock.

"This arrangement will assist the identification and realisation of synergies between the work programs for each component of the project, resulting in cost and logistic efficiencies. It will lead to more effective execution of the project."

"We believe having the project owners and the lead contractor working as one team, with shared objectives and shared risk/reward arrangements, is the best way of managing the currently-challenging and competitive oil and gas construction market," he said.

Technip Oceania is based in Western Australia and Malaysia and provides engineering and construction management services across Asia Pacific with access to the global resources of Technip, one of the world's largest project management and construction companies.

The award of a preferred contractor is another important step towards reaching a final investment decision on the project later this half-year.

ENDS

Participants are:
Origin Energy Resources (Kupe) Limited* 50% (Operator)
Genesis Energy 31%
New Zealand Oil & Gas Limited 15%
Mitsui E&P New Zealand Limited 4%
*a wholly owned subsidiary of Origin Energy Limited

About Origin Energy: With a history dating back 140 years, Origin Energy is a major Australian integrated energy company focused on gas and oil exploration and production, energy retailing, power generation and utility network management. Origin seeks to find, develop and produce gas and oil reserves strategically located close to energy markets and existing infrastructure. Its exploration portfolio in New Zealand includes acreage in the Taranaki, Northland and Canterbury Basins. Origin's interest and operatorship of the Kupe Field is an example of the company's efforts to secure and develop new producing assets in the region.

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