US oil explorer gets green light to survey

A US oil and gas company will start exploring off the South Wairarapa coast within 18 months, but any economic boost will not be seen for another five years.

Anadarko New Zealand Company, a subsidiary of one of the world's largest oil and gas companies, has been granted two five-year permits to explore Pegasus Basin, off the coast of Cape Palliser.

Anadarko NZ corporate affairs manager Alan Seay, in Wairarapa with Asia Pacific exploration manager John Gordon to discuss plans with local leaders, said the company viewed it as a long-term project and economic benefit was unlikely in the exploration phase.

"It doesn't mean much at this stage," said Mr Seay. "The dollar signs go on in people's eyes when an explorer comes to town, but it just doesn't happen in the exploratory phase."

Anadarko ships would carry out 2D seismic surveying using sonar equipment, then 3D seismic surveying to identify more specific drill locations, and if there was enough oil and gas potential to justify it they would drill an exploratory well.

If the company then wanted to set up a drilling operation, it would need to go through another regulatory process to do so.

Mr Gordon said a drilling operation would not necessarily mean "jobs on rigs", and economic benefit would come via supporting services onshore.

Although it was likely a drilling operation would have an onshore base, it was too early to say whether it would be in Wellington or Wairarapa, said Mr Gordon.

The operation would not be closer than 25km from the coast, and a drill ship and rig would not be able to be seen from shore.

Anadarko held a 25 per cent share in the Deepwater Horizon drilling project from which 4.9million barrels of crude oil spilled into the Gulf of Mexico in 2010. Mr Gordon said the company was a silent shareholder and had no control of the operation at the time of the spill.

"Events like the Gulf of Mexico are extremely rare ... Anadarko has been drilling and operating in deep water for 20 years and done so without any significant incident."

Environmental impact assessments would be carried out for the seismic surveying and an exploratory well, which would be checked by the Environmental Protection Authority. Mr Gordon said the company worked to high environmental standards, with a focus on prevention.

Mr Seay said community consultation, including with iwi leaders who have been contacted by letter, would be a focus for the company over the coming months.