Southern focus for oil, gas exploration

Simon Bridges
Simon Bridges
Southland and the adjacent offshore Great South Basin are the new focus of oil and gas exploration, as Energy and Resources Minister Simon Bridges signals the opening up of those areas.

Consultation on the 2016 block offer has begun with iwi and local authorities in the areas being proposed for onshore and offshore oil and gas exploration. Southland is being targeted for a new offer beyond 2016.

Mr Bridges said he had instructed officials, from permitting agency New Zealand Petroleum & Minerals, ''to begin engagement and information sharing'' with iwi, hapu and Southland local authorities.

''Following this process, I will consider including parts of onshore and offshore Southland in future block offers beyond 2016,'' Mr Bridges said in a statement yesterday.

The Government now uses specified areas in its block offers to promote tendering for acreage by oil and gas explorers, ultimately awarding exploration permits to one of them.

''The [current consultation] feedback from these groups ensures that any areas of sensitivity are carefully considered before the tender round is finalised,'' Mr Bridges said in a statement.

The Government had contracted its own seismic surveys to entice explorers to New Zealand and the data was being made freely available, with the expectation explorers would then undertake more advanced work.

Mr Bridges said protected Schedule 4 conservation areas, including national parks, marine reserves and World Heritage sites, were excluded from the block offer process.

He said the Government's successive block offers revealed oil and gas explorers wanted long term opportunities in a mix of mature (previously explored) and frontier (largely unexplored) acreage, which New Zealand had to offer.

Off Otago's coast, New Zealand Oil & Gas is seeking joint venture partners for a one hole, up to $180million programme, potentially for 2017, while Houston based Anadarko may take up to two years to drill its second test hole, also off the coast from Oamaru.

Shell has yet to announce its intentions for any offshore drilling in the area, while onshore and north of Oamaru, Tag Oil will make a decision on drilling within about two months.


At a glance
2016 block offer

Proposal, one onshore and four offshore areas: Total 537,632sqkm
Open until October 30, permit winner announced next March
• Onshore Taranaki Basin: 1185sqkm
• Offshore Pegasus and East Coast Basins: 68,661sqkm
• Offshore Northland Reinga Basins: 186,181sqkm
• Offshore Taranaki Basin: 72,973sqkm
• Offshore Great South and Canterbury Basins: 208,632sqkm

Source: NZPM


Add a Comment