NZ’s crude oil and condensate production have remained at near-record levels for the fourth consecutive quarter. The Ministry of Economic Development’s NZ Energy Quarterly shows production of crude is expected to be boosted again later this year as Maari, a new field located off the Taranaki coast, starts producing its first oil. The Maari field is expected to reach full production in early 2009. While this will increase NZ’s total production, it is forecast production from the Tui field will have begun to decline by this time. Estimates of the ultimate recoverable reserves for the Pohokura field have recently increased 39% to 62m barrels. This increase means Pohokura now has the largest remaining oil reserves of any field in NZ. The total size of the Tui field has also recently been increased to 50m barrels, with 35m barrels remaining. The total size of the new Maari field is estimated at 49m barrels. These fields are still small when compared with the Maui field which has a total size of 210m barrels, of which only 24m barrels has been extracted.

Meanwhile, during the June 2008 quarter, almost 48PJ of gas was produced in NZ. Although this was about 3% less than in the June 2007 quarter, the Report notes confidence in NZ gas production appears strong, with the continued development of new fields. Accounting for 39% of the gas produced in the latest quarter, the Pohokura field represents the biggest share in NZ’s gas supply. Maui and Kapuni fields accounted for 34% and 11% respectively, while the remaining 16% was divided amongst the other smaller fields.

Recent estimates of gas reserves at Pohokura place the recoverable reserves at approximately twice the remaining Maui field gas reserves. The Report notes Methanex intends to restart the Motunui methanol plant during the September quarter and the company believes there will be enough gas available to operate this facility until at least the end of 2009.

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