WHY NEW ZEALAND
In October 2013 our company closed a strategic acquisition in partnership with L&M Energy. This 50/50 joint venture is to explore and develop the “TWN Licenses”: three Petroleum mining licenses totalling 23,049 acres in the main production fairway of the Taranaki Basin, and a 50% interest in the Waihapa Production Station; a high-capacity (45 mmcf/day, 25,000 bbl/day) full-cycle production facility that is central to our permits and includes an extensive network of gathering and sales pipelines.
NZEC will act as the operator for all explorations and productions, and the Waihapa Production Station gives us strategic control over gathering, processing and sales infrastructure in the Taranaki Basin. This provides us with the ability to quickly bring on near-term production additions, reduce full-cycle development lead times, and execute on longer-term growth plans.
As the only open-access midstream facility in the Taranaki Basin, the Waihapa Production Station offers business opportunities for processing third-party gas, liquids, oil and water. Its associated infrastructure includes:
- A 45 mmcf/d gas processing, gas compression and LPG extraction facility (“TAWN facility”)
- A 51-km 8-inch gas sales pipeline from the Waihapa Production Station to the Stratford Gas Power Generation Plant then terminating in New Plymouth
- 59 km of oil/gas mixed product pipelines including gas lift lines
- A 25,000 bbl/d oil processing facility
- 49-km oil sales pipeline from the Waihapa Production Station to the Omata Tank Farm, capable of transporting up to 15,500 bbl/d
- An 18,000 bbl/d water disposal processing system
- A 70 tonne/d liquid extraction capacity
As a result of years of fossil fuel and geothermal energy production, our country offers an essentially complete energy infrastructure. In-country infrastructure includes:
- Oil and natural gas processing facilities
- A domestic natural gas distribution system
- An oil refinery
- An oil export hub on the North Island
- Oil terminals at ports on both islands
- Good highways and rural roads throughout the North Island.
The past years of production declines have created surplus handling capacity. This means that new oil and natural gas production can be brought on-stream efficiently and will face no marketing bottlenecks, offering a range of options for domestic and international sales.
Longer-term, a continued decline of oil and gas production will mean that some of this infrastructure will be able to be repurposed for newer energy production, storage and transportation techniques. This should positively affect our eventual plan to diversify and keep our energy production at a national high.
New Zealand’s fiscal and regulatory regime governing energy exploration and production is comparable to the best current regimes in Western Canada.
New Zealand’s extensive energy infrastructure ranges from processing facilities and a domestic natural gas system to an extensive pipeline system and in-country oil terminals.