Statoil is giving up on exploring the Reinga basin offshore New Zealand, following its three-year study of the area, which has shown low probability of a discovery.
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Map of New Zealand, from Statoil. |
The Norwegian giant informed the New Zealand government of its decision to cease its exploration efforts in two exploration permits, PEP55781 and PEP57057, in the Regina basin 85km off the west coast of Northland, where Statoil is 100% stake holder and operator.
“After studying 2D seismic data of the search area for the past three years, we think the chance of making a large oil or gas discovery is small, so we have decided to conclude our exploration work in Northland and return those exploration permits to the Crown,” Statoil New Zealand Country Manager Brynjulv Kløve said.
“Some may speculate we are surrendering the permits for various reasons but the only reason is that we see the probability too low to justify continuing our search,” he said. “Our focus will now shift to our four exploration permits off the South East Coast of the North Island, and to exploration projects elsewhere in the world.”
Statoil was awarded the permits in 2013 and 2014, which cover 11,670sq km in water depths ranging from 1000-2000m.
In February 2016 Statoil acquired a 30% working interest in permit 57073 from operator OMV (70%). The permit covers an area of 9800sq km in the East Coast Basin, and sits in water depths of 1000-2000m.
OMV and Statoil plan to conduct geological and geophysical studies, as well as seismic acquisition over the coming years. The work will provide information necessary to decide, in 2021, if a well commitment should be made in the permit, Statoil said. The deal is still subject to regulatory approval.
Statoil also holds 50% working interest in Blocks 57083, 57085 and 57087 with Chevron as operator. The permits, in the East Coast and Pegasus basins, southeast off New Zealand’s North Island, cover more than 25,000sq km and sit in 800-3000m water depths.
New Zealand launched its 2016 block offer petroleum tender with four offshore, and one onshore areas up for grabs in March.
The four offshore release areas, with a total acreage of 525,515sq km, are located in the Reinga-Northland basin, Taranaki basin, Pegasus and East Coast basins, and Great South-Canterbury basin. The onshore release area, at 1062sq km, is in Taranaki.
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