Tui Project: decommissioning the Tui oil field

The NZ Government is managing the decommissioning of the Tui oil field assets in the wake of the financial problems affecting the permit operator Tamarind Taranaki Ltd.

Latest status

9 October 

The close-out of the Tui oil field decommissioning project has been delayed due to the abandonment certification of one of the 4 wells, Pateke-3H. 

Plugging the wells was the most complex stage of the decommissioning project, where 4 former production wells had to be entered and cement plugs positioned approximately 3km below seabed. The results were then reviewed by an independent Well Examiner who verified the work had been completed and certified 3 of the four wells as abandoned. When a well is certified as 'abandoned', it means it has been sealed to render it permanently inoperative. 

Suspended status the Pateke-3H well

One well, Pateke-3H, the most technically challenging of the Tui wells, has instead been declared as 'suspended'. During the plugging operations, existing damage in the lower reaches of the well prevented the cement plug from being placed at the preferred depth. This required a revised plan to place the plug higher up in the well using an alternative technique which ultimately did not meet the standards specified.  

Pateke-3H was certified as suspended in accordance with regulatory requirements on 16 September 2024. This means that the well is rendered temporarily inoperative by sealing it.  

This is a widely recognised international well status meaning there are at least 2 tested well barriers in place and the risk of an unplanned escape of fluids is very low. The Tui oil field is depleted, meaning there is no realistic possibility where Pateke-3H could leak hydrocarbons. All Tui wells required gas to be injected to enable them to flow, and as the system was removed in 2022, there is no foreseeable risk to the environment.  

Next steps  

Pateke-3H will remain under the Tui Project Well Examination Scheme, which means the Ministry of Business, Innovation and Employment (MBIE) is responsible for making sure the well barriers maintain their integrity for the suspension period and the well will be monitored accordingly.  

MBIE is working to define the potential options for Pateke-3H while keeping regulators and Treaty partners informed. The other 3 wells plugged during the decommissioning campaign have already been issued final abandonment certificates. 

1 March 2024

The Tui Project’s offshore decommissioning activities were completed on February 26, 2024, when Sapura Energy Australia recovered the last of the subsea infrastructure from the Tui Oil Field.

Sapura Energy Australia arrived at Port Taranaki 16 days earlier to undertake the final stage of the decommissioning and completed the final campaign ahead of schedule.

Sapura construction support vessel, the Sapura Constructor, removed 4 mid-water arches, and cut and retrieved the 2 remaining wellheads.

This work was residual tasks from the Tui Project’s earlier phases.

With all infrastructure now removed, the Tui Project is focusing on the post-decommissioning environmental surveys and regulatory reporting to close-out the project.  

One of the mid-water arches being hauled onto the Sapura Constructor.

One of the mid-water arches being hauled onto the Sapura Constructor.

The decommissioning process

The decommissioning of the Tui field was conducted in 3 main stages, with a fourth stage to complete residual work. Eash of these stages of work required detailed planning and environmental approvals.

  1. Demobilisation of the FPSO vessel Umuroa coupled with works to ensure that the subsea assets are left safe and secure (completed in May 2021).
  2. Removal of the subsea infrastructure (concluded in July 2022).
  3. Plugging and abandonment of the wells (concluded in November 2023).

Offshore work wrapped up in March 2024, but the close out of the project has been delayed due to finalising the abandonment certification for one of the 4 wells, Pateke-3H.  

To date 3 of the 4 former Tui production wells have been certified as abandoned. However, Pateke-3H, the most technically challenging of the Tui wells, has instead been declared as 'suspended' due to the cement plug installed not meeting the standards specified. Suspended status means the well has been rendered temporarily inoperative by sealing it, with 2 tested barriers in place.  

Pateke-3H will remain under the Tui Project Well Examination Scheme, which means MBIE is responsible for making sure the well barriers maintain their integrity for the suspension period and the well will be monitored accordingly, while work to define potential options is progressed. 

Treaty partners and stakeholders

The Crown is committed to continued meaningful engagement and consultation with Te Kāhui o Taranaki (Taranaki Iwi) and other Treaty partners throughout the entire decommissioning process.

The decommissioning of the Tui Oil Field entails the removal of the subsea infrastructure and the plugging and abandonment of the wells. Te Kāhui o Taranaki (Taranaki Iwi) continue their involvement with a particular interest in the work being completed as planned in a safe and environmentally responsible manner.

Stakeholders, including the oil and gas industry, service companies, local government, non-government organisations and other interested parties are kept informed of developments and consulted where applicable.

Contracts and recruitment

At the outset of the Tui Project, MBIE did not have experience in the decommissioning of offshore petroleum assets so it needed to procure external technical advice to perform this role. To guide the work, an MBIE Project Team was created, which includes a number of staff who are very experienced in the oil and gas sector.

For information on appointments and contracts:

Legislative change

The Government amended the Crown Minerals Act 1991 in the wake of the issues affecting Tamarind Taranaki and its ability to fund the decommissioning of the Tui oil field.

The amendment, enacted in December 2021, imposes statutory obligation on all current and future petroleum permit and licence holders to decommission their wells and infrastructure.

It also enables the regulator to periodically assess permit and licence holders’ financial capability to meet their decommissioning obligations, requires permit and licence holders to maintain adequate financial security for decommissioning purposes, requires permit and licence holders to make a financial contribution towards any post-decommissioning work, expands enforcement powers and makes other minor changes.

Crown Minerals (Decommissioning and Other Matters) Amendment Bill(external link) — New Zealand Parliament website

Tamarind Taranaki Ltd (in receivership and liquidation)

Tamarind Taranaki Ltd – permit operator of the Tui oil field – was placed in receivership and liquidation in December 2019.

Its parent company, Tamarind Resources Private Limited (Singapore) went into receivership in March 2020 and into liquidation in April 2020.

The Crown is an unsecured creditor in respect of Tamarind Taranaki Ltd (TTL).

The liquidators of the Tamarind companies disclaimed the Tui assets to the Crown, but the petroleum mining permit currently remains with the liquidators.

Further information

Documents related to the Tui Project are available here:

Cabinet Paper - The Crown's Approach to Decommissioning the Tui Oil Field(external link)

Contact

For more information on the Tui decommissioning process please email:

decommissioning@mbie.govt.nz

Last updated: 09 October 2024