Kapuni

The Kapuni discovery was a landmark event that had commercial significance for New Zealand. It launched a new era that saw consumers taking advantage of natural gas as an efficient and low-cost energy source for industrial and domestic use. Kapuni’s success also led to the development of Taranaki’s energy infrastructure.

Production from Kapuni peaked in the mid-late 1970s at ca. 70 PJ/annum as part of the pre-Maui development of the natural gas market (in particular Kapuni natural gas fed the New Plymouth Power Station for electricity generation). Once Maui came on-stream in 1979, and Kapuni natural gas sales reduced to ca. 20 PJ/annum, the surplus field deliverability was used for a natural gas re-injection scheme to accelerate condensate production.

During the 1980s and 90s, a number of additional Kapuni infill/appraisal wells were drilled and hydraulically fractured to maintain field deliverability and test previously untapped zones.

In 1991 BP decided to exit exploration and production activities within New Zealand and sold their Kapuni field share to the remaining two Joint Venture parties, with the result that Shell and Todd shares became aligned at 50% each.

In the mid 1990’s, Todd was extremely active in the natural gas market, which resulted in new natural gas supply contracts to the 70 MW Fonterra/Todd Energy co-generation plant located at Whareroa near Hawera (1996) and Taranaki By-Products plant located near Okaiawa in South Taranaki (1999).

Due to the natural decline in field deliverability, natural gas re-injection ceased in 2001. Since that time Kapuni has seen a number of well entry related activities over the last few years, with recompletion workovers, additional perforations, water shut-offs, hydraulic fractures, and the drilling of additional wells (KA-16 > KA-20).

The latest focus has been on appraising the tight gas intervals located between the K1A and K3 reservoirs.

In August 2017 Todd acquired Shell’s 50% interest in Kapuni to become 100% Owner and Operator.