NZ Oil Exploration: Exxon Mobil Signals Pull-Out From Great South Basin
October 14th, 2009
Exxon Mobil has given its strongest signal yet there is far less interest in the Great South Basin than its most enthusiastic boosters had hoped. While it has sought and been granted a year’s extension on its “drill or drop” rights, Exxon, along with field partner Todd Energy (10%), is seeking farm-in partners before going further. One highly placed industry observer says “I’d say Exxon didn’t like what they found.” Exxon has until 10 October 2010 to announce a drilling programme, and a year beyond to drill.
PEP 50117 in the Great South Basin is 100km offshore with ocean depths of 500m to 1km. Approximately 1336 square kms of 3D seismic data was collected between December 2007 and April 2008, with an additional 961 sq kms of 2D seismic also acquired and processed. The partners also reprocessed a further 1200 sq kms of existing 2D data. While there had been high hopes Exxon Mobil might add further lustre to a busy summer of exploration and production well activity, the decision has caused little surprise within the industry. Exxon’s effective withdrawal leaves only local tiddler Greymouth Petroleum with an interest in Great South Basin exploration territory.
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