Major international oil explorer Anadarko Petroleum Corporation (NZSE: APC) is sticking to its goal of drilling in deep water off the South Island late next year. Anadarko entered New Zealand waters in June, farming into 50% of Origin Energy's PEP 38262 p
Major international oil explorer Anadarko Petroleum Corporation (NZSE: APC) is sticking to its goal of drilling in deep water off the South Island late next year.
Anadarko entered New Zealand waters in June, farming into 50% of Origin Energy’s PEP 38262 permit in the frontier Canterbury Basin off the coast of Dunedin.
Anadarko will operate the permit and has agreed to fund the first US$30 million of the cost of drilling an exploration well.
Anadarko and Origin have said they would move to acquire a rig to drill a well in PEP 38264, likely to be the Carrack-Caravel deepwater double prospect structure, in the 2011/2012 summer drill season.
Bret Dixon, from Anadarko Petroleum Corporation’s international new ventures division, said at a conference in Auckland this week that the company is working to interpret 3D seismic data acquired by Origin for Carrack-Caravel.
“We’re working away on that data and we think there’s probably a well there."
Andarko is talking to other operators over options for sharing a deep water rig.
“To bring that kind of resource into New Zealand, it would be irresponsible of us not to discuss the potential use of that asset by other operators,” Mr Dixon said.
“We’ve had those discussions and will continue to have those discussions with anyone who wants to have them, as well as with the Crown.”
Austrian oil explorer OMV is one potential partner for deep water rig use – as it must commit to drilling in the Great South Basin by July next year or risk losing its three permits.
Speaking in Auckland today, OMV NZ’s managing director Wayne Kirk said that the company was still in “deep thought mode” on whether to drill.
Since June, Anadarko has also acquired 50% of Origin’s PEP 38264 permit, further offshore than Carrack-Caravel, and 45% of deepwater Taranaki permit PEP 38451.
It is expected that the US investigation into the deepwater rig explosion in the Gulf of Mexico will be completed by the time any new deepwater drilling in NZ starts.
Energy and Resources Minister Gerry Brownlee said this week he expects to receive a report back "shortly" on whether New Zealand's current environment, health and safety regulations for the industry are fit for purpose.
It is likely that the new Environment Protection Agency will play a lead role in any new legislation to govern the sector.
