Associate Energy Minster Harry Duynhoven said he awarded offshore Taranaki licence PEP 38483 last Tuesday to a consortium involving AWE New Zealand, Stewart Petroleum, the offshore arm of New Zealand Oil and Gas, and WM Petroleum, a subsidiary of NZOG affiliate Pan Pacific Petroleum.

Duynhoven's announcement confirms industry speculation that no new companies were involved in the recent deepwater Taranaki blocks offer. Commentators said existing players were the most likely to have made the sole bid - for the best of six blocks - taking tentative steps into the deepwater from the eastern Maui and Tui fields.

Duynhoven said the permit, previously known as Block E, was now held by operator AWE New Zealand Pty (75%), Stewart Petroleum Company (15%) and WM Petroleum (10%). The 12,000 sqkm permit was the largest and southernmost of the blocks on offer and had water depths of approximately 500m.

He has not released the monetary value of the proposed five-year work program, though the partners - who all hold interests in the adjacent licence PEP 38460 - will be planning more seismic during 2004-05 and at least one exploratory well before 2007.

AWE, NZOG and Pan Pacific - together with operator Transworld and recent farminee Mitsui - plan to drill up to three wells in the Amokura and Pukeko prospects in PEP 38460 this autumn when the Ocean Bounty rig returns to New Zealand waters.

PEP 38460 also holds the Tui oil discovery of last summer, which the partners believe holds at least 10 million barrels of recoverable oil, with planned horizontal wells capable of flowing in excess of 5000 bopd each from the Eocene-aged Kapuni F sands.

AWE NZ and listed Perth company Tap Oil were awarded the 6647 sqkm licence PEP 38 259 in the southern section of the offshore Canterbury Basin last August.

Independent analyst Peter Strachan said the partners were finalising the pieces in the jigsaw puzzle, ahead of next year's drilling and trying to lockup the permits around the area in case of further success.