Rick Wilkinson
OGJ Correspondent
MELBOURNE, July 12 -- New Zealand officials announced July 11 the awards of exploration permits to two oil and gas consortiums for four areas of the Great South Basin off Southland.
New Zealand's Associate Energy Minister Harry Duynhoven said the two groups are expected to spend $1.2 billion exploring the Great South Basin over the next 5 years.
A consortium led by ExxonMobil New Zealand (Exploration) Ltd. that includes Todd Exploration Ltd.—New Zealand's largest domestically owned exploration and production company—picked up one of the four awarded area packages of single or multiple blocks.
A second consortium, led by OMV New Zealand Ltd. (Austria) and including Thailand's PTTEP Offshore Investment Co. Ltd. and Mitsui E&P Australia Pty. Ltd., received the other three areas consisting of six exploration blocks, with a combined acreage of 54,000 sq km. The areas awarded to this group included: Package 1, which covers Blocks 11 and 12 with a total area of 18,000 sq km; Package 2 for Block 13 (9,000 sq km); and Package 3 for Blocks 5, 6 and 14 (27,000 sq km).
The six blocks awarded to that consortium are considered to have high petroleum potential as they are in the area of the earlier exploration drilling, said PTTEP Pres. Maroot Mrigadat. OMV New Zealand is operator with a 36% stake, PTTEP with 36%, and Mitsui, 28%.
Great South Basin covers about 100,000 sq km and has been sparsely drilled. Hunt Petroleum Corp. found noncommercial oil and gas shows in four of eight wells drilled in 1976-84.
The new exploration groups plan to shoot 2D and 3D seismic surveys to identify prospective drilling targets.
A total of 40 blocks, each about 9,000 sq km in size, were offered by New Zealand in the Great South Basin bidding round that closed in March. Only five bids were received in the much touted but ultimately disappointing licensing round.
New Zealand appears to have high petroleum potential but much of it has not yet been explored. Its proved and probable remaining reserves are estimated at 520 million boe. It produced 23,000 b/d of oil and condensate in 2006 and is expected to increase production this year.
