Chevron, ONGC among companies awarded 15 exploration permits by New Zealand

Dec. 9, 2014
New Zealand’s government has awarded six onshore permits across the Taranaki, West Coast, and East Coast basins, and nine offshore permits across the Taranaki, East Coast, Reinga-Northland, and Pegasus basins, all part of the country’s Block Offer 2014.

New Zealand’s government has awarded six onshore permits across the Taranaki, West Coast, and East Coast basins, and nine offshore permits across the Taranaki, East Coast, Reinga-Northland, and Pegasus basins, all part of the country’s Block Offer 2014.

Collectively the permits represent more than $110 million in committed expenditure on initial exploration, which, if successful, could lead to further work worth more than $1 billion, New Zealand’s government indicates.

New Zealand in 2013 awarded 10 permits, representing committed spending of $62 million and, depending on success, further exploratory work worth as much as $720 million (OGJ Online, Dec. 5, 2013).

“Block Offer 2014 has attracted three new companies to explore here, as well as expanded interest from local and international companies already operating in New Zealand,” said Simon Bridges, New Zealand’s minister of energy and resources.

The new entrants include the US’s Chevron Corp.—in a joint venture with Norway’s Statoil ASA—and ONGC Videsh Ltd., the overseas arm of India’s Oil & Natural Gas Corp. Ltd. New Zealand’s New Endeavour Resources represents a new entrant that’s domestically based.

Chevron New Zealand Exploration Ltd. takes petroleum exploration permits 57083, 57085, and 57087 in the offshore Pegasus and East Coast basins, covering more than 25,300 sq km in 800-3,000 m of water. The permits reside southeast of North Island.

Chevron will operate the blocks with 50% working interest, while Statoil will hold the remaining 50%. The initial phase of the project will consist of data collection.

“This award adds to Chevron’s range of potential long-term options in the Asia-Pacific region,” said Melody Meyer, president of Chevron Asia Pacific E&P Co.

Chevron has operated in the downstream sector of New Zealand for more than 90 years.

In addition to the three permits it’s sharing with Chevron, Statoil is taking on a fourth permit as operator with 100% working interest, building on its existing position offshore New Zealand.

PEP 57057 is next to PEP 55781 in the Reinga basin offshore Northland, awarded to Statoil in Block Offer 2013, marking the company’s entrance into New Zealand.

The permit sits 100 km offshore, covering 1,670 sq km in 1,500 m of water. Statoil has committed to acquire 200 line-km of 2D seismic data within the permit.

“The East Coast acreage adds another high-impact opportunity to our long-term portfolio, while the expansion in the Reinga basin secures access to potential upsides from our existing position,” said Erling Vagnes, Statoil senior vice-president for exploration in the eastern hemisphere.

ONGC Videsh takes the 2121-sq-km PEP 57090 while New Endeavour Resources takes the 1,618-sq-km PEP 57070, both in the Taranaki basin.

Other companies awarded offshore permits include OMV New Zealand Ltd., a wholly owned subsidiary of OMV AG of Austria, taking PEPs 57073 and 57075, respectively in the Taranaki and Pegasus basins; and New Zealand’s Todd Exploration, as operator, and Australia’s Beach Petroleum, each taking 50% of PEP 57080 in the Taranaki basin.

Companies awarded onshore permits include Mosman Oil & Gas NZ, which takes PEPs 57058, 57067, and 57068, respectively residing in the East and West Coast basins; Canada’s TAG Oil, which takes PEPs 57063 and 57065 in the Taranaki basin; and Petrochem, which takes PEP 57076 in the Taranaki basin.