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New Zealand

PMP 38160 (Maari Field) and PEP 38413 (Manaia), Offshore Taranaki Basin
Horizon Oil Interest 10%

The Maari development, operated by OMV (New Zealand) Ltd, is located in PMP 38160 some 80 km offshore Taranaki, New Zealand in 102 m of water. The field, in which Horizon Oil has a 10% interest, holds proven and probable reserves in excess of 50 million barrels of oil. The development will involve an unmanned wellhead platform housing the wellheads of the 5 production and 3 injection wells, linked via subsea flowlines to a floating production, storage and offloading vessel anchored 1.5 km away.

UPDATE ON MAARI FIELD DEVELOPMENT – 31 July 2008

Installation of the Maari field development facilities is now essentially complete, with the remaining tasks being commissioning of the FPSO Raroa and the wellhead platform (WHP) and pull-in of the flowlines and umbilicals that connect them. The flowlines and umbilicals had previously been laid from the buoy to the vicinity of the WHP using the Toisa Proteus installation vessel.

The FPSO sailed to the permit area and was installed on the mooring buoy on 13 May 2008. Since then the swivel has been installed and successfully rotation tested. All FPSO systems are now being commissioned, to the extent they can be without hydrocarbons. The operations team is undergoing training while commissioning is underway.

The WHP was fully installed with adequate base penetration achieved on 21 May 2008. Minor remedial work to the seafloor adjacent to the platform base, involving the placement of 60 tonnes of gravel, was performed. The temporary refuge and accommodation module on the platform has been commissioned and there are now up to 30 personnel on the WHP continuously for the hook-up and commissioning process. All temporary installation aids, including the strand jacks, have been removed.

The rig that will drill the development well, the Ensco 107, has been prevented by bad weather from completing final stages of plugging and abandonment of the nearby Momoho-1 well. It is expected to be released to the Maari joint venture within days. A temporary mooring has been installed in the field to allow the rig to safely approach and jack-down alongside the WHP. Preparation for the development drilling phase is progressing well, with offshore rig supervisory staff recruited and equipment delivery on schedule. The intention is to batch drill the first 3 production wells, with the anticipation that they will be turned to the FPSO in October.

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In November 2005, the operator of the Maari joint venture, OMV New Zealand Limited, advised go ahead of the development of Maari field.

On 7 December 2005 it was announced that the New Zealand Government’s Ministry of Economic Development had granted a Petroleum Mining Permit (PMP 38160) for the field, covering an area of 34 sq km. The PMP grants the joint venturers the rights to conduct production operations for a period of 22 years, reflecting the long life predicted for production from the main zone at Maari, as well as from shallower and deeper zones which have not yet been fully appraised. It is also significant that the Maari joint venture has applied for an Appraisal Extension over the nearby Manaia discovery. Subject to satisfactory appraisal, which will likely be carried out in association with Maari development drilling, this will also be produced through the Maari facilities.

Letters of intent (LOI) have now been executed with the selected major contractors in the development. These are Clough Limited for construction and installation of the wellhead platform (WHP), Tanker Pacific Offshore Terminals Pte Limited for supply and operation of the FPSO and Ensco Oceanic International Company for the development drilling. These LOIs are based on fixed price tenders of the successful bidders for the major contracts and allow the contractors to get under way in advance of final documentation so that project deadlines will be met.

The development is now proceeding on track, with project teams for construction of the WHP and FPSO mobilised.