Associate Energy Minister Harry Duynhoven announced the new block winners today, as well as confirming what EnergyReview.net reported in December – that there were no bids for the three outer offshore Taranaki blocks offered at the same time.
Duynhoven said these latest blocks were exciting developments for Northland, as well as further steps to stimulating New Zealand petroleum exploration.
Australia’s Origin Energy (Kupe field operator) and Austria’s OMV (Maari field operator) were already important players in the New Zealand exploration industry.
The Origin-OMV work programs involved an initial work commitment of NZ$15 million, with up to a further NZ$120 million to be spent at later stages of exploration. The companies proposed major exploration programmes over 11,000 square kilometres of acreage, including the acquisition of significant volumes of new seismic data and drilling of exploration wells.
Duynhoven admitted the absence of any bids in the neighbouring Outer Taranaki Basin was disappointing, but understandable given the tight global availability of rigs and seismic vessels.
“We believe there is still potential interest in the unallocated blocks, and we will therefore be re-offering these blocks for a short period with reduced minimum work requirements in the expectation of additional bids.”
Crown Minerals group general manager Adam Feeley today told ERN that a third group had been interested in offshore Northland but that only Origin and OMV had been granted blocks.
Feeley also said he believed the parties that had previously expressed interest in Outer Taranaki should take another look, given the now reduced work program comitments for the three blocks, which were now being re-offered for three weeks.
Duynhoven said he remained confident regarding interest in the upcoming East Coast and Great South Basin blocks offers, which close in mid-February and August respectively.
“The seismic surveys which the government commissioned for the two most recent blocks offers will significantly aid companies in preparing bids, and I am confident that this will result in high quality applications.”
Duynhoven also said he was aware that domestic and overseas international companies were concerned about the tight international availability of drilling rigs in terms of complying with any permits awarded to them.
“We will be taking a reasonable and pragmatic line if worldwide shortages impact on exploration commitments,” he said.
