Power-cable failure at rig triggers $95m claim

Kupe gas and oil field off the Taranaki coast. Photo / Supplied

Budget documents reveal a power cable to the Kupe gas and oil field has failed and is the subject of a $95 million insurance claim.

State-owned enterprise Genesis Energy holds a 31 per cent stake in the field, which started production in late 2009. It cost $1.3 billion to develop the project.

The failure of the cable to the offshore platform in Taranaki is categorised as a new unquantifiable contingent liability in a list of fiscal risks. Kupe operator Origin Energy has lodged a warranty claim and $95 million insurance claim over the failure.

The documents say the cable failure has not affected production from the field.

Australia's Origin holds 51 per cent, NZX-listed NZ Oil & Gas has 15 per cent and Mitsui E&P Australia holds 4 per cent of the project, which includes a drilling rig and an onshore processing plant.

Origin Energy's New Zealand general manager Chris Bush said the power for the unmanned platform was now being supplied by a diesel generator.