NZ Oil Search: US Oil Giant Joins NZ Exploration
March 9th, 2010
US oil explorer Andarko Petroleum is to take a 50% stake in a joint venture with Origin Energy to explore oil and gas prospects about 65km off the coast of Dunedin. It could contribute around $US30m towards the project. Andarko Petroleum Corporation, listed on the New York Stock Exchange with a market capitalisation of $US36bn, is one of the largest independent oil and gas exploration and production companies in the world. Its appearance on the NZ exploration scene points to a new phase in exploration in NZ waters. Origin completed a seismic survey of the Carrack and Caravel prospects last year, covering about 300 sq km within the southern end of the Canterbury Basin. Andarko has since paid for specialist processing of the seismic data. Origin’s executive manager for geoscience and exploration new ventures, Rob Willink says “the joint venture will now move forward to secure a suitable rig for the drilling of an exploration well, most likely in 2011.”
Petroleum Exploration and Production Association CEO John Pfahlert welcomed the move, especially since it means Origin has “introduced” a new exploration company to NZ. He says a one-hole deepwater drilling programme is likely to cost between $US75m and $US100m, with costs beyond Andarko’s contribution shared among the joint venture partners. Pfhalert says the deepwater drilling rig to be used for the Origin programme could potentially be contracted by permit holders in the Great South Basin.
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