Since Statoil was awarded an exploration permit offshore Northland in December 2013, I have visited New Zealand and Northland on several occasions to learn about different local perspectives, answer questions, and share our plans.
I understand there are some uncertainties around our activities. Let me share some details about the key topics.
-The permit: Our permit area in the Reinga Basin is located around 100km offshore from Northland. In our contract with the New Zealand Government, we are to determine the potential for oil or gas production from this area within 15 years. During the first six years we will collect and analyse data. If we conclude that the area is prospective and can be drilled with low risk, we plan to seek regulatory approval to drill a well in 2020.
-Deep sea operations: The permit sits in water depths of 1200 to 2000m. This is a familiar operating environment in our industry. Statoil alone has drilled more than 70 wells in similar depths, on all continents.
-Seismic survey: This summer, the seismic company TGS will collect 17,000 line kilometres of 2D seismic in the Reinga, Northland and Taranaki basins as a multi-client survey. Statoil has committed to buy the data collected within our permit area. Based on analysis of this data, Statoil will decide on further steps.