Associate Energy Minister Harry Duynhoven, announcing the results of the September bidding round, said the awarding of new petroleum exploration permits would involve over NZ$130 million of new investment in the Taranaki region.

"The new exploration permits are a significant part of a broader strategy aimed at stimulating exploration and investment in oil and gas in New Zealand," Duynhoven said.

A total of 23 bids were received for the blocks on offer and the permits awarded went to a combination of new and local companies ranging from junior explorers to multinationals.

"The new companies, which include Pogo Producing Company out of the United States and ROC Oil from Australia, all have proven track records of drilling exploration wells," he added.

Duynhoven said he was particularly encouraged that there were a number of aggressive bids with commitments to drilling wells as early as the first year of the permit, in light of the depleting Maui gas reserves.

"Domestically sourced natural gas remains an important and economically attractive component of New Zealand's overall energy needs. For this to remain the case, a significant increase in exploration activity is required if new discoveries are to replace existing production."

"Despite having a highly ranked regulatory regime and steadily increasing gas prices, we need to continually look for new opportunities to promote New Zealand as an exploration destination" he said.

"Crown Minerals advisers are currently developing a range of options designed to further increase exploration activity and in turn help address concerns over the decline of the Maui field and to meet the increasing demand for electricity."

Commentators say some of the more unusual results of the bidding round are the "new look" trio of Todd Energy, OMV Petroleum and Origin Energy replacing" the former Shell-Todd-OMV offshore alliance; and the fact that Todd Energy has again chosen to go it alone - this time without OMV, as well as former long-time partners Shell - in two new offshore blocks.

Another Aussie to fare well was Perth-based Tap Oil, which was granted two onshore permits of the three blocks it bid for, in association with Austral Pacific (formerly Indo-Pacific) and other partners.

As expected Westech and Bridge Petroleum (a separate company belonging to Westech directors Ed Davies and Kevin Johnson) were awarded further onshore blocks, as well as Houston-headquartered Discovery Geo. Greymouth Petroleum, which operates several small onshore Taranaki fields, is not mentioned.

Duynhoven said the awarding of the new permits should prove an ideal impetus to the 2004 New Zealand Petroleum Conference, to be held in Auckland early next month, where he was sure the urgent need to find replacement reserves for Maui would be a hot topic.

The successful bids and the permits awarded are as follows:

Block A: PEP 38485 - OMV New Zealand, Origin Energy Resources NZ, Todd Petroleum Mining Company.

Block B: PEP 38486 - Todd Petroleum Mining.

Block C: PEP 38487 - Todd Petroleum Mining.

Block E: PEP 38488 - Pogo Producing Company.

Block G: PEP 38489 - Pogo Producing Company.

Block I: PEP 38490 - Pogo Producing Company.

Block J : PEP 38762 - To be advised

Block K: PEP 38763 - Discovery Geo (Australia), CSR New Zealand Exploration.

Block L: PEP 38764 - Discovery Geo (Australia), CSR New Zealand.

Block M: PEP 38765 - Tap (New Zealand) Pty, Austral Pacific Energy (NZ), Magellan Petroleum (NZ), Durum Energy (NZ) Limited

Block N: PEP 38766 -Tap (New Zealand), Austral Pacific, Magellan Petroleum.

Block O: PEP 38767 - ROC Oil Company, Westech Energy NZ, Bridge Petroleum Limited

Block Q: PEP 38768 - Petroleum Resources Limited, Austral Pacific Energy.