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Published on July 12, 2007

PTT Exploration and Production (PTTEP) and its partners have been awarded oil-exploration concessions in six ocean blocks south of New Zealand's South Island.

The offshore blocks, covering a combined area of 54,000 square kilometres, are in what is known as the Great South Basin. They were among 40 blocks offered in the New Zealand Offshore Great South Basin Bidding Round 2006, organised by the Crown Minerals Department of

New Zealand's Economic Development Ministry.

The partnership consists

of OMV New Zealand, which will be the operator, with a

36-per-cent interest; PTTEP subsidiary PTTEP Offshore Investment, also with a 36-per-cent interest; and Mitsui E&P Australia, with a 28-per-cent stake.

PTTEP president Maroot Mrigadat called the successful bid a major step in PTTEP's investment expansion in the Asia-Pacific. It will be the company's first investment in a project in New Zealand.

PTTEP and its partners

won three packages of blocks. Package one comprises Blocks 11 and 12, covering 18,000 square kilometres; package two contains Block 13, covering 9,000 square kilometres; and package three comprises Blocks 5, 6 and 14, covering 27,000 square kilometres.

The Great South Basin is

a large sedimentary basin

with thick sediments conducive to hydrocarbon generation. Past exploration there has been limited by low oil prices and the area's remoteness. The six blocks awarded to PTTEP and its partners are considered to have high petroleum potential, because they are located in an area where past exploration wells have found shows of hydrocarbon.

"We're not only delighted to have the opportunity to expand our investment in a high-potential frontier, but also pleased to have a chance to work with esteemed companies from Australia and Japan that have strong expertise in oil and gas exploration and production," Maroot said.

New Zealand is regarded as having high petroleum potential, but not much of its territory has been explored. Its proven and probable remaining re-serves equal 520 million barrels of oil. The country's oil and condensate production this year is about 40,000 barrels per day. Its average natural-gas production last year was about 420 million cubic feet a day.