Resources Minister Shane Jones has welcomed further investment interest in New Zealand's petroleum sector, with a recent new entrant seeking to expand its exploration interests in the offshore northern Taranaki Basin.
New Zealand Petroleum and Minerals (NZP&M) has opened a three-month competitive application process for a petroleum exploration permit application from Sunda Energy.
"This is the sixth petroleum prospecting or exploration permit application accepted since the Government removed the offshore oil and gas exploration ban, and another encouraging sign that investors are taking a fresh look at New Zealand's resource potential," said Jones.
"Sunda Energy is a potential new participant in New Zealand’s petroleum sector, and I welcome its interest. New entrants bring capital, expertise and competition, which are all important ingredients for a healthy and active sector."
Sunda entered the New Zealand market in April through the acquisition of Matahio Energy's New Zealand assets, including the producing Cheal, Cheal East, and Sidewinder fields, as well as the Puka exploration permit. That acquisition is subject to ministerial consent, and the relevant applications are currently under evaluation by NZP&M officials.
The new petroleum exploration permit application covers about 645 sq km offshore within the territorial sea between northern Taranaki and southern Waikato. The proposed permit area has previously been explored and contains the Awakino gas condensate discovery and other identified potential prospectivity.
The application proposes detailed geological and seismic studies to assess the permit area's prospectivity, including reprocessing existing 3D seismic data and evaluating drilling targets.
With six applications now accepted for evaluation, covering opportunities ranging from frontier prospecting acreage through to more mature exploration targets, Jones said the breadth of interest is encouraging.
“We know there is still significant petroleum potential in New Zealand's offshore basins. Exploration is the first step in understanding whether those resources can be developed to support our long-term energy security."
This growing pipeline of exploration activity has given Jones the confidence that New Zealand could be entering a new chapter.
"Responsible exploration today has the potential to help underpin tomorrow’s energy security, create high-value jobs, attract investment into our regions, and strengthen New Zealand’s economic resilience.”
Applications will be assessed in accordance with the criteria set out in the Minerals Programme for Petroleum 2025 and against the requirements of the Crown Minerals Act, including the applicant's technical and financial capabilities, record of compliance, health and safety and environmental capabilities and systems, and proposed work programme.
More from the c-store here
