Austrian-headquartered OMV yesterday said Crown Minerals had granted the Maari partners the 22-year mining licence (PMP 38160). The nearby Manaia discovery was to be retained under an appraisal extension of exploration licence PEP 38413, which was due to expire later this month.

“Following final investment decision by the joint venturers a few weeks ago, the grant of the PMP by the New Zealand government will allow the joint venture to make the necessary commitments to deliver the project,” said OMV New Zealand managing director Steve Hounsell.

“We expect to be able to award the development contracts very soon.”

The Maari partners and the government had worked co-operatively to enable the PMP to be awarded shortly after project approval, according to Hounsell.

The PMP, which covered the Maari field area of some 34 square kilometres, granted the joint venture rights to conduct mining operations for 22 years, giving sufficient time to recover the P50 field reserves currently estimated to be about 50 million barrels.

All the major development work scopes for the US$360 million project had been tendered and tender evaluation was progressing towards completion. The development contracts were expected to be awarded within the next few weeks to enable first oil in March or April 2008.

The Maari Field was discovered in 1983 some 80km off the south Taranaki coast. OMV took over operatorship of PEP 38413, which also contains the Manaia discovery some 10km away from Maari, from Shell New Zealand in late 2002.

Horizon chief executive Brent Emmett said the fact that the permit had been granted for 22 years reflected the long life predicted for production from the main zone at Maari, as well as from shallower and deeper zones which had not yet been fully appraised.

“It is also significant the Maari joint venture will apply for an appraisal extension over the nearby Manaia discovery,” Emmett said.

"Subject to satisfactory appraisal this will also be produced through the Maari facilities."

The PMP 38160/PEP 38413 partners are: operator OMV New Zealand (69%), Horizon Oil (10%), Todd Petroleum Mining (16%) and Cue Taranaki Pty (5%).