NZ again seeks to attract interest in Reinga-Northland, Pegasus in 2016 'block offer'

Monday 21st March 2016

The government has again included the Reinga-Northland and Pegasus basins in its annual 'block offer' of oil and gas exploration permits, having failed to attract interest in 2015.

Energy Minister Simon Bridges announced Block Offer 2016 at the Petroleum Conference in Auckland. It covers four offshore release areas, Reinga-Northland, Taranaki, Pegasus and East Coast Basins, and Great South-Canterbury Basin. There is also one onshore release area in Taranaki.

The total acreage in this year's tender is 525,515 square kilometres.

Plunging oil prices resulted in oil and gas explorers last year taking up the smallest and most conservative range of new petroleum exploration licences since the government began its annual 'block offer' bidding process in 2012 and no new players stepped up.

Companies have until Sept. 7 to bid in the 2016 round.

Bridges said he acknowledged "the challenging operating environment the industry was facing" given weak prices and global over-supply. "It will take some time to adjust, but as you know oil and gas is a long-term game and one that the government remains committed to."

BusinessDesk.co.nz

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