OMV transfers 30% of deep-sea Pegasus oil licence to Statoil

Tuesday 16th February 2016

Austrian oil and gas producer OMV's New Zealand arm is to farm out 30 percent of its interest in the deep-sea Pegasus Basin, off the east coast of the lower North Island, to the Norwegian state oil company, Statoil.

OMV gained a 15-year exploration licence under Petroleum Exploration Permit 57073 in the New Zealand government's 2014 block offer.

Statoil first took exploration licence acreage in the 2013 block offer and is planning to search for oil and gas in the Reinga basin, off the north-western coast of Northland.

The Pegasus farm-in is subject to regulatory approval and, as holder of a 70 percent stake in the permit, OMV will remain the operator.

"OMV and Statoil will work together on the exploration programme including geological and geophysical studies, as well as seismic acquisition over the coming years," OMV NZ's managing director Peter Zeilinger said. "The work will provide information necessary to decide, in 2021, if a well commitment should be made in the permit."

“OMV is excited with our first partnership with Statoil in New Zealand and we intend to build on the good existing relationships that we have with Statoil globally.”

The announcement comes at a time when exploration well-drilling in New Zealand has all but halted as the slump in global oil prices sees oil and gas companies scale back activity in higher risk and remote prospects, including deep sea offshore prospects. Royal Dutch Shell is also reviewing its New Zealand operations, which could lead to a scaling back or even departure after more than a century of operation in the country.

BusinessDesk.co.nz

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