Shell leads offshore natural gas exploration project in New Zealand

Shell leads offshore natural gas exploration project in New Zealand Royal Dutch Shell is leading an exploration project to look for natural gas off the southeast coast of New Zealand, Reuters reported. Shell will be working with oil and gas firms including Austria's OMV and Japan's Mitsui in the search for natural gas in the Great South Basin. This latest offshore drilling project will join U.S.-based firm Anadarko Petroleum in New Zealand waters, which is cooperating with Australia's Origin Energy. Anadarko has so far drilled one well off the North Island's west coast .

"We're very confident that any find will be natural gas rather than oil," Rob Jager, chairman of Shell New Zealand, told Reuters. "We believe there's less than a 1 percent chance that there's going to be oil."

Due to New Zealand's relatively small domestic gas market, Jager said the development will most likely lead to gas exports. He also said any Shell finds might result in a floating liquefied natural gas development.

Shell's test well worth $200 million could have a 30 percent success rate in the natural gas field, Jager told Radio New Zealand News. However, stakeholders in the companies involved in the project were confident.

"We compete for exploration funding globally, so to get shareholders' support for drilling in the Great South Basin is really exciting," Jager said.

More information on New Zealand gas markets can be found on PennEnergy's research area.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs