Advertisement

New oil expected offshore New Zealand

Government said support for offshore developments is paying off.

By Daniel J. Graeber

WELLINGTON, New Zealand, July 2 (UPI) -- The New Zealand government said Thursday a long-term investment by Austrian energy company OMV in the country's largest oil field has paid off.

OMV started producing oil from the Maari field, the largest offshore oil field in New Zealand, in 2009. It's so far produced a total 15 million barrels and the company has since embarked on a campaign to double the expected rate of production.

Advertisement

"The national government's hard work in this area has delivered significant levels of exploration activity," Energy Minister Simon Bridges said in a statement. "By necessity, the petroleum sector has a long-term view and – even with the current low global oil price – we remain confident that New Zealand remains attractive for those wanting to invest."

OMV said production from the Maari oil field, located off the coast of Taranaki in western New Zealand, was cost-prohibitive because of its distance from shore and the water depth. Subsea technology helped bring the field into production six years ago.

The New Zealand subsidiary of OMV was responsible for a minor oil spill off the Taranaki coast in February. The company estimated about 2 barrels, or around 80 gallons of oil, spilled during the transfer from an oil storage facility to a tanker.

Advertisement

"The government remains committed to developing our oil, gas and mineral resources in a sensible, safe and environmentally responsible way," the minister said.

Oil is the fourth-largest export for New Zealand, bringing in around $700 million each year in royalties and taxes. The government said there are around 149 million barrels of oil reserves remaining in fields already in production

OMV aims to drill four new wells in the Maari field, with a total of around $500 million in investments.

Latest Headlines