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Taranaki: the energy province is the centre of New Zealand’s oil, natural gas and petrochemical industries
The region is home to New Zealand’s Oil and Gas industry with almost 90 percent of the sector’s total nationwide employment based in the region, generating $NZ 741 million GDP. All of New Zealand’s producing oil and gas fields are located in the Taranaki Basin. These are predominantly located onshore, with a few discovered offshore reserves.
Taranaki’s Oil Fields
Taranaki’s five offshore fields - the Tui and Maari crude oil, and Maui, Pohokura and Kupe gas-condensate (light oil) developments – are returning billions of dollars in foreign exchange or import substitution measures. The projects are also providing similar revenues to the Government through taxes and royalties.
The Tui, Kupe and Maari fields hold further significant potential that can be tied in to existing infrastructure or form the basis for new, separate developments.
The Taranaki energy sector is poised to grow further as Kupe comes onstream, Maari reaches full production and the workover programme on the Maui B platform extends the life of this field to 2020 or beyond.
Taranaki remains New Zealand’s only proven petroleum basin, with all commercial production coming from this region.
Ongoing Offshore Exploration
Taranaki remains the focus of much exploration effort, and this is anticipated to remain high beyond 2010, with more explorers hunting for a wider range of petroleum products – oil, condensate, natural gas, CSG and even oil and gas from shales.
Global and GNS Science have completed a technical review of the deepwater acreage, revealing several significant structures – all named after breeds of New Zealand sheep, such as Romney, Corriedale and Coopworth - that together could hold several billion barrels of oil. The results of an extensive seismic survey programme conducted during 2008-09 are now being reviewed with Global and partners likely to drill in 2010.
AWE has taken a 10 percent stake in part of the Global permit next to its own licence and may also decide to drill an exploration well there at the same time.
Any successes would be very positive for Taranaki, with huge implications if future exploration yields any large discoveries.
Onshore Exploration
Onshore activity, while less buoyant than offshore, is still in a healthy state, with established and new companies active in several regions. There has been little onshore exploration in Taranaki during the past 12 months but 2009-10 is looking brighter.
The Government’s Crown Minerals agency in September 2008 awarded nine new onshore Taranaki exploration blocks – three to Greymouth, two to Todd Energy and partner Mighty River Power, two to newcomer Kea Petroleum and Australian partners Hardie Energy and Rawson Resources, one to listed junior L&M Petroleum and Aussie partner Mosaic Oil, and one to small private company Green Gate and partner GB Energy.
These various joint ventures should spend at least $100 million over the first five-year term of the licences, with more than 20 wells to be drilled.
The Shell-Todd owners of the Kapuni field are also extending the economic life of the 40-year-old field through initiatives such as gas re-injection and full field compression to help maintain reservoir pressures and maximise production of gas and condensate and LPG.
The Government’s Ministry of Economic Development believes that the Crown has an ongoing role to play in encouraging further exploration and maximising the contribution of oil, gas and other mineral resources to the nation’s economy, and that exploration efforts to date have barely scratched the surface of New Zealand’s petroleum potential.
Strong Support Sectors
A network of highly developed support services has grown up around the Taranaki energy industry and is an integral part of the region's exploration, development and maintenance programmes.
The New Zealand Oil & Gas Specialist Technologies group is going from strength to strength, with members from Auckland to Bluff. The 22-strong group provides a one-stop shop approach for all “upstream” (oil and gas exploration and production), “downstream” (petrochemical, refining, oil and gas wholesaling and retailing) and other energy-related activities with their wide range of specialist services.
They are also closely linked with the Engineering Taranaki Consortium, which represents a major group of Taranaki engineering companies, with a strong Taranaki and New Zealand customer focus.
Taranaki-based support companies also regularly work in other regions of New Zealand or even overseas. This network includes:
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Sophisticated seismological, geological and engineering skills involved in the exploration and extraction of oil and gas.
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Technologies associated with downstream petrochemical activities such as those at the Methanex methanol plants.
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An engineering base, with specialist design and heavy engineering capabilities to maintain the industry's plant and equipment.
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Specialist support services such as non-destructive testing, health and safety, and transportation.
Investment Opportunities
Venture Taranaki works in partnership with the private sector to attract further added-value industries linked to the oil, gas and petrochemical industries to Taranaki.
Taranaki offers an environment with:
- Future potential and further energy-related development opportunities
- Political stability
- A favourable fiscal regime
- Infrastructure and expertise to support the needs of the sector
Venture Taranaki provides support to Taranaki's existing oil, gas and petrochemical base, and offers free, confidential assistance to potential investors in this industry.
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