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NZ O&G Industry Fact Sheet

Current Producing Fields

Currently some 20 oil and gas fields are in production, all in Taranaki. 

The key ones are (in descending order of remaining reserves)

  • Pohokura,
  • Kupe,
  • Maui,
  • Maari
  • Turangi,
  • Tui,
  • Kowhai,
  • Kapuni, and
  • Mangahewa

 

Reserves

 

New Zealand’s remaining reserves (MED P50, as at 1 Jan 2010) are 1.92TCF (2,077PJ) gas and 171mmbbls (983PJ) oil

  

  

Oil Production (2009)

18 fields produce oil.

19.6 million barrels were produced, of which:

  • 17.9 million barrels exported
  • 1.7 million barrels refined locally

 

Gas Production (2009)

20 fields and wells produce gas.

180 Gross PJ (154 net PJ) of natural gas of which:

  • 53.7PJ went to electricity generation
  • 18.0PJ went to cogeneration
  • 24.5PJ went to feedstock at Methanex and Ballance Agri-Nutrients
  • 44.3PJ went to industrial users
  • 7.9PJ went to commercial users
  • 6.8PJ went to residential users

 

Drilling Activity (2009)

Drilling activity has averaged over 35 wells per year since 2007, including exploration and production wells, both conventional and coal seam gas wells.

 

Major Projects

Major projects recently completed include

  • Pohokura (June 2006)
  • Tui (July 2007)
  • Maari (February 2009)
  • Kupe (December 2009)

Current projects include:

  • McKee LPG plant – Todd
  • Motonui recommissioning – Methanex
  • Ahuroa gas storage –Contact/Origin

 

 Oil and Gas Prices

  • The oil price currently US$80/bbl, averaged US$75/bbl since 2005 (peak >US$150/bbl June 2008)
  • Gas prices average $6/GJ, wholesale pipeline specification, established through bilateral contracts

 

Energy Supply

  • Gas provides 20 percent of New Zealand’s primary energy supply
  • Gas accounts for 25 percent of electricity generated, second only to hydro

 

Security of Supply

  • The majority of New Zealand’s oil is exported due to its higher quality
  • Net oil import dependency is 63 percent 

 

Economic contribution 2009 (national)

GDP

  • The industry (E&P and supply chain) directly contributed $1.8 billion in GDP
  • Including indirect and induced effects, the industry contributed $2.2 billion in GDP

Employment

  • The industry (E&P and supply chain) directly employed 3,400 FTEs
  • Including indirect and induced effects, the industry employed approximately 6,000 FTEs

 

Economic contribution 2009 (Taranaki)

GDP

  • The industry (E&P and supply chain) directly contributed $1.7 billion in GDP
  • Including indirect and induced effects, the industry contributed $1.8 billion in GDP

Employment

  • The industry (E&P and supply chain) directly employed 3,200 FTEs
  • Including indirect and induced effects, the industry employed 4,200 FTEs

 

Exports (2009)

  • $1.9 billion in export value
  • 17.5 million barrels of oil
  • 4th largest export sector after Dairy, Meat and Wood.

 

Tax

  • Between 2004 and 2009, the E&P industry contributed around $1.4 billion in company tax (This is around three percent of total company tax paid over that period)

 

Royalties

  • In the year to June 2010, the government collected $432 million in royalties from O&G
  • O&G accounted for 96 percent of all royalties and levies collected by government  in the year to June 2010
  • Between 1970 and 2008, the government collected close to $3.1 billion in royalties from O&G

 

Capital Expenditure

  • Background exploration expenditure $200 million per annum
  • Background development expenditure $200 million per annum
  • New projects Pohokura $1 billion, Tui $0.3 billion, Maari $1.0 billion, Kupe $1.3 billion

 

New Zealand O&G Capability

  • Large number of O&G industry certified suppliers
  • Over 3,000 FTEs in Taranaki O&G industry
  • Awarded approximately 70 percent of O&G development projects (higher for onshore projects, lower for offshore projects)