Free access to seismic data

In 2009, the government committed NZ$20 million over two and a half years to a data acquisition programme aimed at accelerating investment in petroleum exploration, particularly the country's untapped oil and gas resources in frontier basins.

The programme is aimed at expanding New Zealand's NZ$3 billion petroleum industry into what could be a NZ$30 billion industry by 2025, if the estimated resources in New Zealand's unexplored basins are developed.

The latest funding for data acquisition follows a similar script to when the programme began in 2005 and consists of early seismic (2D) surveys. Chief Petroleum Geologist for the Ministry of Economic Development, Richard Cook, says the data is invaluable for companies assessing basin potential ahead of exploration acreage bidding.

"We're doing the very first exploration phase to boost the understanding of new and unexplored petroleum basins. Adding to this our understanding of the onshore rocks and petroleum system of explored adjacent basins gives the companies the concept of the whole basin that they can use to evaluate its potential," says Cook.

Access to data sets NZ apart

Data is typically packaged in DVD format including raw and interpreted data and interpretation reports. This is vastly different from the way data was collected and shared before the programme began, when companies lodged their data with Crown Minerals, the Government's oil and gas resource management agency. This data was kept confidential for five years and only publicly released for further evaluation of the same area. Furthermore, the new data covers areas that have not previously been explored.

The data acquisition programme is also a departure from the way exploration acreage is usually promoted, being uncommon for countries to provide early stage seismic data free of charge in an accessible format.

"Companies get open access to this information, and it's digital. In comparison, in regions with active oil and gas exploration activity, like Indonesia and Vietnam, it's very hard to get this sort of data - or any data at all," says Cook.

Cook says New Zealand's provision of quality data has helped boost its ranking in the Fraser Institute's annual Global Petroleum Survey, which assesses barriers to investment in oil and gas exploration and production.

The institute's 2010 survey ranked New Zealand among the most attractive jurisdictions for investment, and comments from respondents publicized in the survey all acknowledged easy access to data.

Most importantly, the data acquisition programme is opening up new opportunities. The programme's survey of the frontier Reinga Basin resulted in six new petroleum exploration permits being offered. It has also enabled other offers - the frontier Raukumara Basin and the underexplored Northland Basin, which has geological similarities with the Taranaki Basin where all of New Zealand's oil and gas is currently produced.

Since the programme has been in place, New Zealand has attracted interest from major players such as Brazil's state-owned oil company Petrobras, one of the largest international oil and gas explorers and producers. In June 2010, Petrobras was awarded a five-year permit for the Raukumara Basin. Other companies that have seen the potential for oil and gas discoveries in New Zealand over the past few years include Anadarko Petroleum Company, OMV, PTTEP (Thailand) and ExxonMobil.

The Government is further assisting investment in the petroleum industry through its ongoing, active engagement with target companies around the world. Crown Minerals works in partnership with New Zealand Trade and Enterprise's investment unit to promote and maintain these relationships.

Visit the New Zealand Petroleum & Minerals website to access information on New Zealand's petroleum sector.