A new petroleum prospecting application covering more than 4,200 square kilometres of ocean east of the North Island has opened for competing bids as interest in New Zealand’s offshore energy resources continues to grow.
New Zealand Petroleum and Minerals has begun a three-month competitive process following an application from CBX Energy Limited covering approximately 4,207 sq km of the Wahipapa fairway in the Pegasus Basin.
The largely unexplored offshore basin is considered prospective for hydrocarbons, although further work is required to determine its potential. CBX Energy intends to analyse existing geological and geophysical information using modern analytical techniques rather than undertake immediate drilling.
Resources Minister Shane Jones said the application was another sign that petroleum companies were returning to New Zealand following the repeal of the offshore oil and gas exploration ban.
“The return of interest in petroleum prospecting and exploration shows companies are once again willing to invest in understanding New Zealand’s resource potential,” Jones said.
The proposal is CBX Energy’s second application and the seventh petroleum prospecting or exploration application accepted for assessment since the offshore ban was repealed.
Jones said identifying domestic petroleum resources could play an important role in future energy security, particularly by establishing a clearer picture of potential natural gas supplies.
“A country that understands its resource potential is better placed to shape its future,” he said. “Prospecting and exploration help identify opportunities, reduce uncertainty and ensure New Zealand understands the options as it plans for future energy need.”
Previous seismic and geological investigations have indicated the Pegasus Basin could contain hydrocarbons, but it remains one of the country’s least explored offshore areas.
“Frontier areas present some of the most exciting opportunities in the exploration sector because they offer the potential for large-scale new discoveries and geological insights,” Jones said.
Competing applications can be submitted until 5pm on November 25.
Applications will be assessed under the Minerals Programme for Petroleum 2025 and Crown Minerals Act, including scrutiny of applicants’ technical and financial capability, compliance records and proposed work programmes.
