WELLINGTON, New Zealand, Dec. 15 (UPI) -- New Zealand's energy minister took the high road on the country's onshore energy potential despite few bidders showing up for the latest offer.
Todd Energy, which focuses on oil and gas production, was the sole winner of a bid for onshore assets in the country's latest auction for reserves in the so-called Taranaki basin. New Zealand Energy Minister Simon Bridges attributed the low interest to the slump in the overall energy sector that followed the steady decline in oil prices earlier this year.
"The global downturn in the petroleum industry that began in late 2014 has had a profound effect on exploration expenditure worldwide," he said in a statement.
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.
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Canadian energy company TAQ Oil Ltd. took a strong position in the Taranaki basin earlier this year. The company said it expects to bring in about $16 million from the production of about 1,200 barrels of oil equivalent per day, of which 80 percent would be in the form of oil.
Bridges struck an optimistic tone despite the low performance with the latest auction. Survey activity meant to assess the overall reserve potential for New Zealand continues in earnest and the industry as a whole was showing positive returns.
"New Zealand has had a very successful run since adopting annual block offers," he said. "From 2011 to 2015 companies have invested $5.5 billion in oil and gas exploration and production in New Zealand."
