Ministry offers 17 oil, gas blocks

By CHRIS DANIELS

A new bidding round for oil and gas exploration off the Taranaki coast has been launched by the Ministry of Economic Development.

Applications for nine offshore and eight onshore blocks close on October 31, 2003.

The eight onshore blocks cover a total of 590 sq km.

Exploration companies win the right to search for oil and gas in a particular area by promising the most ambitious programme of drilling and seismic surveying.

While most exploration companies look for oil - as there is a ready market around the world for it, finding gas is not the booby prize it once was.

The domination of the big Maui field and its cheap natural gas previously made it uneconomical to recover gas.

Exploration is seen as a vital step for the future of new electricity generation, where plans for gas-fired power stations have been put on hold for want of a replacement for the depleting Maui gas field.

The Pohokura field, just off the north Taranaki coast, is the next field to come into production, possibly within two to three years. Pohokura's owners - Preussag Energie, Shell Exploration and Todd Petroleum - have asked the Commerce Commission for permission to jointly market the gas.

The commission's draft decision on this application is expected to be released next Thursday.

Associate Energy Minister Harry Duynhoven said petroleum explorers were showing more interest than ever in New Zealand as an international destination.

New Zealand was now the 13th most attractive country in the world for petroleum investment, according to a survey.