Associate Energy Minister Harry Duynhoven today confirmed what many in the industry had been waiting for all year, the exit of the US giant as it concentrates its exploration efforts elsewhere.

ConocoPhillips' departure coincides with the expiry yesterday of the second five-year term of licence PEP 38602, a large (48,865 sq km) permit in the Northland Basin, which it operated with a 56.67% interest.

It drilled its second well, Karewa-1, off Port Waikato in January and plugged and abandoned it without releasing any results. Industry commentators said Karewa-1 was probably dry and that the main reason ConocoPhillips drilled the well was to fulfill work program commitments. Several years ago its first well, Wakanui-1, which was Northland's first deepwater well, was also plugged and abandoned.

Also, as expected, ConocoPhillips' New Zealand partner Todd Energy, which holds a 10% interest in the permit, has been assigned a small portion of the permit area around the Kawera-1 well site. Karewa-1 had targeted a shallow late Miocene-aged prospect in the southernmost part of the licence. Japan's Inpex Corporation had held the remaining 33.33% stake in PEP 38602.

Duynhoven said the rest of the permit would be available for allocation again in the next Crown Minerals' Taranaki blocks offer, which was expected to be announced in July or August.

No commercial hydrocarbons have been discovered in the mainly offshore Northland Basin, which covers around 120,000 sq km along the west coast of the north of the North Island. However, it is regarded as one of New Zealand's most prospective areas, with geology similar to the Taranaki Basin.