The Raukumara Basin could become a lucrative source of oil, says the government.
The Raukumara Basin off the North Island's east coast is likely to be the next area opened up to oil explorers, Associate Energy Minister Harry Duynhoven said today.
Mr Duynhoven told the Petroleum Conference in Auckland that the Government was keen to open new areas for exploration after
recent successes.
"The next cab off the rank later this year will undoubtedly be the Raukumara blocks offer," Mr Duynhoven said.
"Other block offers that we have on the near horizon are offshore Northland, offshore Taranaki, Canterbury and East Coast."
There were positive signs that oil would be found in the Raukumara basin to follow up on the recent success of the Tui oil field.
Mr Duynhoven was enthusiastic about last year's Great South Basin block's offer, saying it would generate $1.2 billion in spending on exploration over the next five years.
"It's pleasing for me to be able to say that the hunt for oil and gas in our southern oceans is now on in earnest."
The onshore Taranaki Basin blocks offer made last year was expected to have a "good outcome" and had already attracted interest from local and international oil exploration companies.
Mr Duynhoven also called on the sector to change its litigious nature.
"While the level of litigation has abated. I would like to stress again that we need to work collectively, constructively and in good faith rather than pursuing divisive court room manoeuvrings."
Mr Duynhoven said the industry would be consulted this year about changes to the petroleum programme planned for 2009.
"The review will include policies around streamlining our allocation regime; and minimum work commitments tailored to the range of petroleum basins."
- NZPA
