Contact reliquishes sole petroleum exploration permit

Contact Energy today abandoned its interest in its only petroleum permit, in the offshore Taranaki Basin.

Contact said the decision did not reflect its plans for its gas supply.

A spokesman said the return of the permit followed detailed analysis of seismic and other data.

The availability and expense of hiring a drilling rig was a factor, he said.

Chief executive David Baldwin said the decision would not prevent Contact from looking at future opportunities.

The company would not comment as to where future permits could be sought.

Contact said the decision would have no financial impact on the company, as the historical costs associated with the permit were written off.

Contact Energy, one of New Zealand's biggest listed companies with 90,000 shareholders, generated about 25 per cent of the country's electricity and is one of its biggest wholesalers and retailers of natural gas.

It is half-owned by Australian company Origin Energy.

- NZPA