ExxonMobil representatives have been in New Zealand this week explaining the proposed GSB program to the government and other key stakeholders.
Head of exploration Wayne Mudge and government relations advisor Rob Young have been talking to Crown Minerals and other government departments, Todd Energy, the Southland region’s port company South Port, and other organisations.
ExxonMobil says the joint venture’s first GSB seismic campaign is about to start with the arrival of WesternGeco’s Western Trident vessel in New Zealand waters late this month.
The Western Trident should shoot about 960 km of 2D and about 1340 square kilometres of 3D seismic as part of the initial 27-month phase of exploring the 16,390 sq.km permit. The vessel should complete the proposed program by mid-February.
ExxonMobil also plans to reprocess about 1200 km of existing seismic, along with completing geological and geophysical studies aimed at establishing the oil and gas potential of the area where water depths range from about 200m to over 900m.
It is believed ExxonMobil and Todd are spending up to $US37 million ($A42 million) during this first phase. Should the seismic and studies support the potential presence of worthwhile hydrocarbon accumulations, then the companies would start drilling in late 2009-early 2010.
Last year, ExxonMobil reportedly paid about $US3.2 million ($A43.6 million) for about 2000km of 2D seismic data shot in 2004 for then operator Australian explorer Bounty Oil & Gas, which was to be free-carried through a farm-out to British company Electro Silica. But the UK company never fulfilled its licence obligations and Fugro-Geoteam later sold the data to Exxon Mobil.
Another GSB operator, Austrian giant OMV, and its partners are also about to start their initial seismic program, with the scheduled arrival this weekend at Bluff of the seismic vessel Discoverer 2.
Last July the New Zealand government awarded five GSB permits to three consortiums, whose work program commitments involve spending over $NZ1.2 billion ($A1.4 million) exploring the basin over the next five years.
Crown Minerals awarded ExxonMobil and Todd Energy one licence, while a consortium led by Austrian energy giant OMV picked up three new licences.
ExxonMobil operates PEP 50117 with a 90% interest, while Todd holds the remaining 10%. In PEPs 50119, 50120 and 50121, operator OMV and Japan's Mitsui Exploration and Production have 36% each, and Thailand's PTTEP Offshore Investment Company holds 28%.
New Zealand private company Greymouth Petroleum was awarded PEP 50122, covering the northern margin of the GSB, starting onshore and extending south to include parts of Stewart Island.
Conditions in the GSB, which measures about 100,000 sq.km, can often be bleaker than those encountered in the North Sea.
But the government says the region has the potential for multi- trillion-cubic-feet gas finds or 100 million barrel-plus oil discoveries. Hunt Petroleum found hydrocarbons in four of the eight wildcat wells it drilled in the GSB between 1976 and 1984 but none was developed.
