Beach plans for drilling in the Canterbury Basin this summer
AUCKLAND: Beach Energy has sought a discharge consent from the Environmental Protection Authority for a drilling programme off the North Otago coast this summer.
The firm, which operates the Kupe gas field off the Taranaki coast, plans to drill one well in the Wherry prospect, about 168km southeast of Timaru.
The venture could drill a further 11 wells in the permit, most at Wherry in the northern part of the acreage, but potentially two in the Gondola prospect in the southwestern part of the permit, which is known as CarrackCaravel.
‘‘Drilling is anticipated to commence in late 2020 and will be completed as part of one or more drilling campaigns, using either, or both, a semisubmersible mobile offshore drilling unit or a drill ship,’’ the company said in the environmental impact assessment for the project.
The decision of Adelaidebased Beach to continue work off the
South Island will be a boost to the sector — and potential gas users — after OMV’s recent unsuccessful drilling off the Otago coast.
It has a string of producing assets in Australia and offshore and previously operated the Clipper permit off the Oamaru coast that New Zealand Oil & Gas bought into in 2013.
It acquired most of its New Zealand interests, including its Kupe stake and its stake in CarrackCaravel, from Origin Energy in 2018. It also had a 30% stake in OMV’s unsuccessful Tawhaki1 well off Balclutha.
The Canterbury and Great South Basins have long been considered prospective for oil and gas. A handful of wells were drilled off the Canterbury coast in the 1970s and 1980s, including Galleon1 in 1985.
That well, drilled by the Shell BP Todd consortium, delivered gas and condensate but recoverable reserves were considered too small to be commercial.
The most recent well drilled off
Canterbury was Caravel1, drilled by Anadarko Petroleum in 2014. It halted its New Zealand activities in 2017.
CarrackCaravel covers almost 14,400sq km of ocean. Beach’s partners in the permit include OG Oil & Gas, the major shareholder in New Zealand Oil & Gas, and Londonbased Discover Exploration.
The consent the venture is seeking is for rainwater runoff from whatever rig it chooses. Further consents would be required for the actual drilling, which will be in water depths of about 1300 metres.
Beach said in its application that it was yet to contract a rig for the work. One well must be drilled by October 2021 under the terms of the permit with the Government.
CarrackCaravel lies near the Clipper permit in which Beach retains a 50% stake. NZOG and Beach must decide by April 2022 whether to drill a well there.