New Zealand's Minister of Energy and Resources Simon Bridges announced the country's third block offering. Up for grabs is a total of 405,000sq km, including both on and offshore acreage.
Offshore release areas include the Reinga-Northland Basin; the New Caledonia Basin; the Taranaki Basin; the Pegasus-East Coast Basin, and the Canterbury and Great South basins. The ministry said that the makeup of the final Block Offer follows extensive consultation with iwi, hapū and local authorities.
The Reinga-Northland Basin is virtually unexplored, said the ministry. The basin's total area covers approximately 75,190sq km off the west coast of Northland, and is considered to be similar to the Taranaki Basin. One exploration permit was awarded for the Reinga-Northland Basin in block offer 2013.
The New Caledonia Basin, a unexplored frontier territory, covers a total area of 49,051sq km, located off the west coast of the North Island. The ministry said that it also shares many geological similarities to the Taranaki Basin.
The offshore Taranaki Basin covers a total 54,920sq km. Located off the west coast of the North Island, the basin stretches from the coast of Auckland to the northern tip of the South Island. Nearby producing wells include Māui (gas condensate and oil), Tui Area (oil), Pohokura (gas condensate) and Kupe (gas condensate). Two permits were awarded in the offshore Taranaki Basin in last year's block offering. OMV, which operates PEP 51906 in the Taranaki Basin, completed a new 3D seismic survey, called Kaka, in the same permit, in the offshore Taranaki basin back in January.
The Pegasus Basin covers a total area of 75,009sq km, stretching from the southeast of Napier to the upper east coast of the South Island. The first exploration permit for this basin was awarded in late 2012, and is to be drilled in early 2014, the ministry said.
The Great South and Canterbury Basins (release area 14GSC-R1) covers a total area of 141,755sq km. It is considered by the ministry to be prospective for oil and gas, with many similarities with the Taranaki Basin. Two permits were awarded for the Great South-Canterbury Basins in last year's block offer. Anadarko Petroleum began drilling operations on the Caravel-1 exploration well in the Canterbury basin back in February, using the drillship Noble Bob Douglas. The expected total depth is 2800m subsea, in 1105m water depth. The program is expected to take 40 days.
Additionally, OMV New Zealand and Mitsui E&P Australia, announced plans in January to drill an exploration well in Production Exploration Permit (PEP) 50119 in the Great South basin. Drilling is targeted for summer 2016.
Once bidding closes the ministry will assess the bids based on their proposed work program, and criteria including the applicant’s technical and financial capability and likely capability to meet health and safety requirements. The invitation for bids for block offer 2014 closes on 25 Sep 2014. Permits will be granted between December 2014 and March 2015.
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