New Zealand’s Energy and Resources Minister, Simon Bridges, has announced the award of nine new oil and gas exploration permits for Block Offer 2015.

Block Offer 2015 includes three onshore permits and six offshore permits, all in the Taranaki basin. Collectively the permits include a committed work program expenditure of $4.4 million New Zealand dollars, with the potential of more than $364 million if all contingent work is realized.

Bridges says the result shows that the Block Offer approach is successfully attracting investment in New Zealand, even in the face of low commodity prices, which are putting pressure on exploration companies to reduce expenditure.

“Over the past three years, the Block Offer process has successfully increased petroleum exploration investment. Block Offer 2015 consolidates these gains and confirms what the industry already knows—that the potential for Taranaki is far from reached,” Bridges said. “The exploration industry is now far more sensitive to budgets in the global context of a low oil price. But the sector is enduring and resilient. They remain attracted to the quality and varied investment New Zealand has to offer.”

Permits were awarded to:

• OMV NZ Limited: four offshore Taranaki permits (in partnership with Mitsui E&P Australia Pty Limited)
• Todd Exploration: one offshore Taranaki permit
• Mont D’Or Resources Limited: one offshore Taranaki permit
• Petrochem Limited: three onshore Taranaki permits.

Source:  World Oil