Petrobras awarded big exploration permit in New Zealand

Energy and Resources Minister Gerry Brownlee awarded, on 1 June 2010, New Zealand's first petroleum exploration permit over the Raukumara Basin off the North Island's East Coast to Petrobras International Braspetro B.V.

"It is with great pleasure that I welcome, for the first time to our region, one of the biggest global players in the petroleum industry," Mr Brownlee said.

"Petrobras is an international giant in this industry and a world leader in development of offshore drilling technology and production.  Given Petrobras's expertise, and financial and technical pedigree, this is an exciting step into areas of New Zealand until now unexplored."

On 10 December 2008 the government released a blocks offer covering two permit areas over the basin.  The offer closed on 28 January 2010.  As the successful bidder, Petrobras has been awarded a five-year exploration permit, covering 12,333 square kilometres.

Mr Brownlee said the government was committed to unlocking the potential of the country's frontier basins.

"Doing so will be an important part of a better future for all New Zealanders – bringing more jobs, more tax and royalty income, and most importantly, creating opportunities for long term regional development.

"To do this we need to attract investment from petroleum companies that have the capacity and capability to explore and build knowledge of our offshore basins.

"The government has a role in this through our ongoing data acquisition programme.  However, it is with the significant commitment by exploration companies in their work programme bids that we will better understand the wider geology and potential of our petroleum resources, and move closer to realising the commercial production potential of our offshore basins."

Mr Brownlee said the announcement represented a major step forward in the relationship between New Zealand and Brazil.

"Petrobras's investment will add a substantial new dimension to the economic relationship between New Zealand and Brazil.  This is a very welcome development," Mr Brownlee said.

New Zealand is keen to deepen its economic relationship with Brazil, which is the world's eighth largest economy, with GDP of US$1.7 trillion. 

"I look forward to a long and fruitful cooperation between New Zealand and Petrobras," Mr Brownlee said.

Further information on the Raukumara Basin and Petrobras International's work programme are available at www.crownminerals.govt.nz.