New wells to pump up Maari profits

OIL production from Taranaki’s offshore Maari field picked up in the March quarter after interruptions during the December quarter, as partners prepare for the big second phase of field development later this year.

Maari is New Zealand’s largest producing oilfield. Maari’s main 69 per cent shareholder OMV is bringing two drilling rigs to New Zealand in coming months, while United States-based Anadarko is also bringing a rig late this year to explore deep water prospects.

The highly successful Maari field produces about 10,000 barrels of oil a day and has now pumped out 21.5 million barrels in total since it started in 2009, after hitting an initial peak of 40,000 barrels a day.

It has already paid back its development costs of more than $1 billion. In 2011 OMV paid royalties of almost $82 million to the government and tax of $126m, making a profit of $324m.

The Maari/Manaia field is operated by Austrian-based OMV which carried out a series of well workovers last year to fix electrical pumps to improve the field’s performance.

Horizon Oil, a 10 per cent shareholder in the Maari field, has announced its share of production in the March quarter was 77,409 barrels, up from almost 63,000 barrels in the December quarter.

But partners are aiming to lift production further with new production wells at Maari, and two new exploration wells at nearby Manaia. Later an exploration well is planned for the nearby Whio prospect.

The Ensco drilling rig is due to arrive in New Zealand waters in the December quarter, to drill extra production wells at Maari and the adjacent Manaia fields.

The programme will take about 12 months to complete and is expected to increase the field’s production rate by perhaps a couple of thousand barrels a day in the medium term, and lift total oil recovery in the longer term.

In the September quarter, the semisubmersible Kan Tan IV drilling rig is due to arrive and start drilling two exploration wells, before later returning to drill the Whio prospect.