Associate Energy Minister Paul Swain announced the new petroleum exploration permits (PMPs) today, saying the greater interest in the new acreage would lead to more intensive exploration efforts and, hopefully, more oil and gas discoveries in the next few years.
This country desperately needs to make more Pohokura-sized (1tfc-plus) gas discoveries over the next few years to stop methanol producer Methanex leaving these shores and to prevent widespread power problems during cold dry winters.
Swain said he was very pleased so many companies bid for these Taranaki permits. "This shows the keen interest there is in New Zealand as a place to explore for oil and gas. With more companies exploring over generally smaller permit areas than issued in the past, it is hoped this will lead to more oil and gas being found."
The minister said the 21 permits went to 19 different explorers, four of which were local companies. Of the remaining companies, seven were from the United States, six from Australia and three from Europe.
Industry commentators largely expected the results, but say there are a few surprises in this new package.
"The disappointment is that there are no new major players bringing fresh ideas and exploration effort into finding more Pohokura gas fields. You can be sure none bid because, if they had, they would have been allocated a permit.
"Perhaps we will see some of them, such as Apache, bid for the deepwater Taranaki acreage when bidding opens later this year?" said one.
Another surprise was Wellington-headquartered Indo-Pacific Energy going offshore for the first time, as chief executive Dave Bennett has previously denied any plans to test the waters around New Zealand.
It was interesting Indo-Pacific had picked up acreage immediately east and northeast of the Pohokura permit. "Perhaps Indo now feels it has some money to spend from its onshore Goldie oil discovery?" asked another commentator.
Commentators said it was expected that Shell, in association with New Zealand's Todd Energy and Austrian firm OMV, would pick up the other two offshore licences, to the north and northwest of the dwindling Maui field.
However, it was interesting only Todd Energy had been awarded an onshore permit immediately to the east of the Rimu-Kauri oil discoveries. "Todd has gone without long-time partner Shell in some recent exploration, such as with Conoco off Northland, but this is Todd alone. They must think there is something worthwhile down the southern edge of the eastern thrust belt system, but something that giant Shell wouldn't be interested in."
Several commentators wondered about the identity of newcomer Bridge Petroleum, which has picked up three onshore permits. "They've picked up three licences, but who are they?" asked one.
However, EnergyReview.Net understands Bridge Petroleum is a company recently formed by Westech Energy president, Denver-based Ed Davies, and his New Zealand offsider Kevin Johnson.
Industry commentators said it was rather disappointing five blocks were not allocated. Was this because there were no bids at all, or was Crown Minerals becoming more particular about its awarding of new permits?
New Zealand newcomer Greymouth Petroleum has only picked up one new onshore block, to the southwest of its Kaimiro field; while German firm and Pohokura partner, Preussag Energie, together with Aussie firm Origin Energy, has won an onshore licence immediately southwest of the Pohokura prospect.
Wellington-based GeoSphere Exploration, with new partner Aspect Energy, has won two onshore permits, as has Sydney-based New Zealand Oil and Gas.
Indo-Pacific has won three onshore permits, this time in conjunction with Aussie partners Tap Oil and Magellan Petroleum.
Swift Energy New Zealand has, as expected, won two new permits, one to the northwest of its Rimu oil field and the other to the west and south of the onshore-offshore Kauri prospect.
The new permits were issued following a competitive bidding round earlier this year, where 41 bids were received for the 26 blocks on offer.
