Oil explorer wants more time

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The New Zealand subsidiary of Austrian oil giant OMV, which had until this week to decide whether to test drill offshore for oil and gas in the Great South Basin or drop its permit, has requested a two-month deferral.

Large tracts of new ship-borne seismic data have been collated on the Great South Basin and Canterbury Basin during the past four years.

However, it is only a fraction of the $1.2 billion exploration spending touted when separate consortiums led by oil giants Exxon and OMV were awarded Great South Basin permits four years ago.

OMV New Zealand, which is the country's largest oil producer and third-largest gas producer, said yesterday it had applied to the Ministry of Economic Development to defer its drilling commitment dates on three Great South Basin permits from July 10 until September 10.

"OMV has stated that they are committed to on-going exploration of the Great South Basin and require additional time to refine the scope of work for the next phase," the company said yesterday.

In July 2007, five-year permits for six of a total 40 Great South Basin exploration blocks were awarded to the two consortiums.

OMV New Zealand has a 36 per cent share in its consortium with partners PTTEP Offshore Investment, of Thailand (36 per cent) and Mitsui Exploration and Production Australia, of Japan (28 per cent).

Exxon Mobil's venture included Todd Exploration New Zealand, which had a 10 per cent stake.

In October last year the Exxon-led consortium relinquished its Great South Basin exploration permit, citing technical risks and the lack of a third partner.

- Otago Daily Times