Oil giant OMV New Zealand is sending positive signals on the potential for exploration drilling in Great South Basin, after altering work commitments which could include more ship-borne seismic acquisition or test drilling.
Three major multinational companies are operating under five-year permits off New Zealand's coast: Austrian subsidiary OMV New Zealand Ltd, in the Great South Basin; United States-based Anadarko Petroleum, in the Canterbury Basin; and the Brazilian company Petrobras in the Raukumara Basin, off East Cape in the North Island.
OMV New Zealand's managing director, Dr Wayne Kirk, said earlier 2D seismic data acquired by OMV, totalling 18,600km taken over 2008 and 2010, had been evaluated and "there are a number of prospective areas which may benefit from 3D seismic definition prior to drilling", he said yesterday.
He emphasised OMV had until July 10 this year to commit to a decision to drill in the Great South Basin, or relinquish its permit from Crown Minerals, and no decision on drilling or 3D seismic work had been taken.
OMV had applied to the Ministry of Economic Development to modify its work commitments to include acquiring 3D seismic data or drilling and this was granted on March 25.
"Allowing for either drilling and/or 3D seismic acquisition during the next phase of work gives us greater flexibility as we work through our next steps," Dr Kirk said.
In July 2007, five-year permits for six of a total 40 Great South Basin exploration blocks were awarded to two consortiums, US Exxon Mobil (90%), the world's largest non-government oil company, and Todd Exploration New Zealand (10%).
In the second consortium OMV New Zealand Ltd has a 36% share with partners PTTEP Offshore Investment, of Thailand (36%), and Mitsui Exploration and Production Australia, of Japan (28%).
In October last year the Exxon and Todd consortium relinquished its Great South Basin exploration permit, citing technical risks and the lack of a third partner.
In the Canterbury Basin, next to and north of the Great South, United States oil giant Anadarko Petroleum Corp is advancing plans to start test drilling off the coast of Oamaru, by next summer.
Anadarko is understood to be investigating rig-sharing with other companies to spread the multimillion-dollar costs. Its representatives have visited Dunedin on several occasions to scout Dunedin as a supply base. Anadarko is understood to have ordered a second run of ship-borne seismic data from the Canterbury Basin.
Earlier this week, hundreds of people protested against Petrobras, which in response said it "values the right of protesters" to express their views, The New Zealand Herald reported.
The Brazilian oil giant said its work by Orient Explorer complied with all New Zealand and international laws and survey work was "safe and simple".
Protesters are concerned that if oil is discovered and the prospect developed there was a risk of a deep water spill contaminating marine life and the coastline.
Petrobras, one of the world's 10 biggest oil companies, said it was in the first phase of the five-year prospecting project which involved seismic and geological studies to help measure the potential for gas or oil.
The exploration permit covers 12,333sq km where earlier government seismic data and modelling work showed the basin had geology capable of trapping hydrocarbons in commercial quantities. Water depths range from coastal to 3000m at its northern reaches.
