US firm to explore for gas, oil near Cape

A United States-based oil and gas company has been given a five-year permit for exploration off the Wairarapa coast.

Energy and resources minister Phil Heatley yesterday announced 10 petroleum exploration permits would be granted after a year-long consultation and tender process, including two permits off the coast of Cape Palliser.

A subsidiary of US company Anadarko Petroleum, Anadarko NZ, has been granted permits for Pegasus Basin 1 and 2 blocks, which start about 22km off the coast of Cape Palliser and Tora.

A third offshore Wairarapa block, East Coast 2, which starts about 11km off Castlepoint, was also on offer but a permit was not granted. It may be on offer again in 2013.

The US-based company is a deep-water drilling specialist with interests in the US, West Africa and Alaska, and had a 25 per cent share in the Deepwater Horizon drilling project which saw 4.9 million barrels of crude oil spill into the Gulf of Mexico in 2010.

Anadarko has been given the go-ahead for 2D seismic surveying over 4200km of the two blocks, 3D seismic surveying of 2000sq km of the blocks and contingent exploration well within five years.

A spokesman for the Ministry of Business, Innovation and Employment said the seismic surveying would likely see research vessels out in the water while work is carried out.

Anadarko is one of the world's biggest oil and gas companies in the world, with 2.54 billion barrels of oil equivalent of proved reserves at the end of last year and has exploration permits for Taranaki Bain and Canterbury Basin.

The company has plans to drill its first wells in Taranaki and Canterbury in 2013 and 2014.

Wairarapa MP John Hayes said while the exploration phase may not have an economic impact on the region, if the project was successful it would bring benefits. He is being briefed on the project by Aandarko representatives in the coming weeks.