Gas estimates

Press, 23 January 1988, Page 31

Gas estimates

PA Wellington Estimates of reserves in the Maui gas field which are widely expected to be lower than previous estimates, are to be passed to the Government next month. The Maui Development, Ltd, chairman, Mr John Orange, who is also managing director of BP New Zealand, Ltd, said that initial results showed that the field’s reserves were adequate to meet the range of predictions of future gas demand made by the Ministry of Energy. Revised estimates would be settled later in the year after review by the Ministry. Mr Orange said the studies had taken longer than originally expected because of complexities in the "gas reservoir modelling process.” The Secretary of Energy, Mr Basil Walker, said that though he had not seen the

estimates, he expected a downward revision. This would probably be similar to Petrocorp’s estimate of a 25 per cent reduction on 1979 estimates. He said that from the tone of the Maui partners’ statement it did not seem that the new figures would dramatically alter Maui Development’s ability to meet its gas supply commitments. The delay in having the estimates made available — they were originally due in August — was irritating but not crucial, he added. The decision about when and where to site a second Maui production platform, which could cost up to $1.6 million, will be based on the latest studies. Mr Orange said decisions on the Maui B platform project would be made when future gas use was more clearly defined.