NZ Government energy player Mighty River Power has farmed out half of its 50% stakes in the Pogo-operated licences PEP 3488-490 to Mitsui, which is already a partner in the Kupe and Tui oil field developments, also off Taranaki.

Mitsui has been steadily building its NZ exploration and production portfolio through its subsidiary Mitsui E&P New Zealand (MEPNZ) since 2003. It has so far concentrated exclusively on the Taranaki Basin, the country’s only commercial petroleum region.

It holds a 4% stake in the $NZ980 million ($A840 million) Kupe gas-condensate field development and more recently became the largest partner, with a 35% stake, in the $US225 million ($A292 million) Tui Area oil field project.

It also holds a 22.7% interest in the Hector prospecting area, southwest of Tui, where operator Australian Worldwide Exploration is to drill an exploration well, probably in the second quarter of this year, as part of an eight-well campaign off Taranaki. Mitsui, an alliance partner of AWE, will be a partner in seven of these wells.

AWE managing director Bruce Phillips told PetroleumNews.net today that the Australasian AWE-Mitsui alliance was working very well.

“AWE and Mitsui are involved in four cornerstone projects in Australia and New Zealand, with the Tui Area being one of them," he said.

“We believe AWE has the necessary technical and commercial expertise, but sometimes we lack the financial strength that Mitsui can bring to projects.

“If we have any excess equity we offer it to Mitsui and they likewise offer us participation in their permits."

Phillips said AWE also considered the Pogo acreage but decided not to participate.

Pogo, Mitsui and Mighty River Power are planning to drill two wildcat wells in their licences late this year or early next year – one in PEP 38488 (covering 2732 square kilometres) and the other in either PEP 38489 (covering 1013sq.km) or PEP 38490 (covering 478sq.km).

Mitsui’s NZ operations were largely operated out of the Mitsui E&P Australia office in Perth.