McKee is the largest producing onshore oil field in New Zealand, although as the field matures focus is gradually shifting from oil production to development of the overlying gas cap.

The field is 100% owned by Todd Taranaki Ltd, a subsidiary of Todd Petroleum Mining Ltd. Todd is also operator of the field.

Field Location

The field is located in Taranaki, 20 km SE of New Plymouth, with the McKee Production Station some 12 km inland from the Methanex Motunui complex. Forty wells have been drilled from 13 well sites scattered over the surrounding farmlands and oil, gas and water flow via an extensive in-field pipe network to the production station for processing.

Field History

The McKee oil field was discovered in 1980 by state-owned Petrocorp Exploration Ltd. Over the next four years a number of accumulations in adjoining fault blocks were discovered, Pouri, Pukemai, Tuhua and ToeToe, although it quickly became apparent that these compartments formed part of the overall McKee field.

The geologically complex McKee structure is a major thrust fault, with a north-east direction. The hydrocarbon accumulation occupies a steep south-easterly dipping (up to 60^o) sandstone reservoir sequence truncated against the fault at a depth of 2000-2400m below sea level. The field is cut by a number of lesser reverse and normal faults, which may consist of multiple faults or fault zones.

The oil was located in a thick oil rim, located on the flank of the structure, with a gas cap overlying this rim in the crestal part of the field. Due to compartmentalisation, the original fluid contacts varied from block to block.

Production from the field commenced in early 1984.

With an active drilling programme oil production was initially maintained around 10,000 stb/d, but in the early ‘90s oil production declined steadily, while at the same time gas and water production increased.

In 1988 Petrocorp Exploration was sold to Fletcher Challenge Energy, which was acquired by Shell in 2001. To achieve Commerce Commission clearance for their purchase of FCE, Shell sold the McKee asset (PML 38086), and the nearby Mangahewa asset (PMP 38150), to Todd Taranaki Ltd.

Since acquiring these assets, the steep decline of oil production has been slowed and the reserves have been reassessed. In recognition of the higher gas reserves, Todd has committed to a 40% increase of the gas processing capacity, while at the same time it has introduced gas reinjection in order to enhance the oil production.

Field Facilities

The McKee facilities currently consist of 40 wells linked through product gathering lines to the McKee Production Station. At the production station the well fluids are processed (separated and stabilised) into a gas stream, an oil stream and water.

The treated gas is compressed, and injected into the gas export lines. The stabilised oil is pumped via a 40km oil line to export storage facilities at Port Taranaki in New Plymouth. Treated produced water is injected in a water disposal well.