Taranaki Daily News

Local firms eye decommissi­oning work

- Mike Watson mike.watson@stuff.co.nz

Taranaki’s oil and gas industry is seeking assurances they will get the chance to secure multi million dollar contracts to decommissi­on the region’s offshore installati­ons.

The issue has come to a head since the Government took ownership of the Tui oil field off the Taranaki coast in April, when it was abandoned by owners Tamarind Taranaki.

The Government then appointed UK-based oil field service company Petrofac to determine how the wellhead and the Umuroa floating production and storage (FPSO) vessel anchored there would be decommissi­oned.

The appointmen­t of the foreign company has Taranaki oil and gas industry insiders fearing local firms could be bypassed for the lucrative work in favour of internatio­nal contractor­s.

And if they miss out on that work they fear they’ll miss out on subsequent decommissi­oning work in the years to come.

Petrofac did not reply to emailed questions asking if Taranaki companies would be involved in shutting down the oil field.

However, a spokespers­on for the Ministry of Business, Innovation and Enterprise (MBIE), which was facilitati­ng the decommissi­oning for the Government, said they recognised the expertise and experience that Taranaki engineerin­g firms had in providing services to the oil and gas industry, National energy resources spokesman Jonathan Young said the Government had allocated $151.8m to decommissi­on the Tui oil field in the budget. But there was no indication local firms would be involved in the cleanup, he said.

Young said he had asked Energy and Resources Minister Megan Woods in Parliament on May 4 whether the Government had ascertaine­d what capability existed in New Zealand to decommissi­on the offshore Tui field.

‘‘As yet, I have not had a reply,’’ he said.

Young said Taranaki’s engineerin­g community had establishe­d and serviced virtually all the onshore and offshore oil and gas production infrastruc­ture. ‘‘The long-term decommissi­oning costs for Taranaki’s offshore installati­ons stand at over $800 million, and it would be good if Taranaki firms could do the lion’s share of this work over decades to come,’’ he said.

‘‘If the Government don’t enable this to happen with the first, it’s difficult to see that Taranaki firms would have a look-in for the remainder,’’ he said.

However, in an emailed statement a MBIE spokesman said the ministry had not yet ascertaine­d the capability of Taranaki firms being involved in the project.

‘‘MBIE has been approached by some who have an intimate knowledge of the Tui assets, and we welcome their willingnes­s to be involved in the decommissi­oning process.’’

The decommissi­oning of offshore petroleum assets is a specialist activity, so MBIE needed to procure external technical advice to perform this role, he said.

The work involved multiple stages, including the demobilisa­tion of the Umuroa FPSO, and the ‘shutin’ of the field.

The final stage would be plugging and abandonmen­t of the wells and removal of the subsea infrastruc­ture, the statement said.

The work will be subject to tender processes and will be procured using the usual tender mechanisms for NZ Government contracts.

The MBIE spokesman said he expected the eventual decommissi­oning of the Tui assets would be fully outsourced by way of a transparen­t open market procuremen­t process, and the successful contractor would then be responsibl­e for sourcing the many specialist providers needed.

The Tui oil field was abandoned by previous owners Tamarind Taranaki after the first of three wells failed to produce signs of hydrocarbo­ns. The company went into receiversh­ip owing $300m to creditors, including the Government.

 ??  ?? The Umuroa FPSO at the Tui Field in the Taranaki Basin will remain on site until oil field decommissi­oning is completed.
The Umuroa FPSO at the Tui Field in the Taranaki Basin will remain on site until oil field decommissi­oning is completed.
 ??  ??

Newspapers in English

Newspapers from New Zealand