Tui oilfield gets $51m funding

Pan Pacific Petroleum has secured up to US$32 million ($51 million) in funding for its share of the development costs of the Tui oilfield offshore from Taranaki.

Commonwealth Bank of Australia is providing the debt facility.

PPP, listed in New Zealand and Australia, owns 10 per cent of the field that includes Tui, Amokura and Pateke.

New Zealand Oil & Gas owns 12.5 per cent of Tui and Japan's Mitsui E&P owns 12.5 per cent while the biggest stake, 42.5 per cent, was bought by Australia Worldwide Exploration (AWE) from Texas-based New Zealand Overseas Petroleum this year.

Production development costs are expected to run to US$300 million to US$350 million, including US$100 million for the floating production storage and offloading vessel.

PPP director Allan Tattersfield said soaring crude prices had greatly assisted the economics of the development.

The situation could improve further if planned new exploration wells struck oil.

- NZPA