New Zealand starts bidding round for Great South Basin
Bidding has opened for petroleum exploration permits in the Great South Basin, off the coast of Otago and Southland
on New Zealand's South Island.
New Zealand's Associate Energy Minister Harry Duynhoven said that 40 new gas and oil blocks of approximately 9,000 sq
km each are being offered to international exploration companies.
A survey of the Great South Basin by the government's Crown Minerals Group in March showed the basin to be larger
than previously thought and indicated new signs of oil and gas. Duynhoven said the region is potentially the most
exciting development in oil and gas exploration in New Zealand since the discovery 40 years ago of the Maui gas
field, offshore of New Plymouth on the country's North Island.
"The Great South Basin is a frontier region where the potential for high reward is matched by high risk in terms of
exploration costs and challenging sea and weather conditions," said Duynhoven.
He said the government hopes to attract companies with good technical skills and significant financial resources to
spend on exploring the contribution the area could make to New Zealand's energy needs.
"Although the Great South Basin is a proven petroleum system it will require several years of exploration before the
full potential of the basin is properly understood," he said.
Crown Minerals, responsible for promoting investment in New Zealand's oil and mineral resources, plans to promote the
Great South Basin bidding round in North America, Europe and Asia.
The bidding round will close in March 2007.