Brazilian company enters ranks of NZ oil explorers

Media release 1 June, 2010 – Embargoed 4:05pm

Brazilian company enters ranks of NZ oil explorers

The decision of state-owned Brazilian company Petrobras to pursue an exploration permit in the Raukumara Basin off the east coast of the North Island confirms the attractiveness of New Zealand to global oil producers says the Petroleum Exploration and Production Association (PEPANZ).

PEPANZ Executive Officer John Pfahlert said today the Petrobras participation in the Raukumara blocks offer follows the company’s recent move to farm into a permit in Western Australia through a 50 percent stake in MEO’s offshore permit in the Carnarvon Basis.

“This participation in the Raukumara blocks clearly indicates they wish to have exposure to this part of the world and we welcome the announcement by the Minister of Energy and Resources, Gerry Brownlee that the permit has been awarded to Petrobras.”

Mr Pfahlert said Petrobras is the second significant new entrant to the New Zealand petroleum industry in recent months following the decision of U.S. major explorer Anadarko to take stakes in two Origin Energy offshore Canterbury Basin permits earlier this year, as it did earlier this month with U.S. company Global Resource Holdings in deepwater Taranaki lease.

“Petrobras controls significant oil and gas energy assets in 18 countries in Africa, North America, South America, Europe and Asia. These holdings, as well as properties in Brazil, give it total assets of US$133.5 billion (2008). It is Latin America’s largest company with 2008 sales of $US118.3 billion.”

The company was formed in 1953 by then Brazilian President Getulio Vargas. While the company ceased to be Brazil’s legal oil monopoly in 1997, it remains a significant oil producer with output of more than two billion barrels of oil equivalent a day, as well as being a major producer of oil products. The company also owns oil refineries and oil tankers.

“Petrobras is a world leader in development of advanced technology from deep water and ultra-deep water production.”

He said the Government’s first promotion of Raukumara was three years ago when its Crown Minerals Group and GNS Science agencies contracted the CGG Veritas seismic vessel Duke to acquire about 1207 kilometres of 2D data over the area north of East Cape. The agencies also acquired magnetic data over the area.

Mr Pfahlert said the permit awarded to Petrobras came after a competitive tender allocation process under which a Petroleum Exploration Permit Block Offer is advertised and bids received and evaluated accordingly. Staged work program bidding, for exclusive exploration permits, is the primary form of allocation for such permits.

The Crown is currently running two other block offers in the Northland and Reinga Basins which close on 18 August. - ends

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