OMV plugs Taranaki Basin well

Last updated 14:28 26/08/2014

Relevant offers


New York enacts restrictions on Airbnb, with fines of up to $10,000 Court action on 'shonky' steel mesh creates pressure for government inquiry Female lawyers charge-out rates lag behind their male colleagues Weight Watchers campaign joins list of PR blunders Opportunist builders, dodgy steel and shonky standards create new building crisis 'worse than leaky homes' Troubled property developer Augustine Lau taken to court for toilets emptying into stream Skills shortage results in firms looking internally to fill roles, recruitment firm says Pumpkin Patch in trading halt - too much debt, not enough capital British American Tobacco offers to buy Reynolds in US$47 billion deal Backlog of defective buildings and shoddy workmanship sparks calls for building warranties

Austrian oil company OMV has plugged a well in the Taranaki Basin after the presence of commercial hydrocarbons could not be confirmed.

OMV, New Zealand's biggest oil producer and third-largest gas producer, said today that it had completed drilling operations at the Whio-1 exploration well.

It had drilled to a depth of 2824 metres, and while it encountered sandstones as expected, it could not confirm the presence of commercial hydrocarbons.

The well was being abandoned before the rig was moved.

OMV New Zealand managing director Peter Zeilinger said the well marked the end of the company's current exploration campaign.

"Although unsuccessful in making a commercial discovery at Whio-1, the data obtained is a valuable piece of the puzzle as we work to understand the generation and accumulation of hydrocarbons in the Taranaki Basin," he said.

Whio-1 was the third well drilled by the company with the Kan Tan IV semi-submersible rig over the past year.

In June, it announced its profits in New Zealand almost halved in the past year to $97 million, down from almost $180m in the previous year.

The drop was because the big Maari oilfield was out of production for more than four months while its tanker ship was repaired.

OMV's total production in New Zealand last year was equal to about 6 million barrels of oil.

For the December 2013 year, OMV New Zealand posted total revenues of about $510m, down from $676m in the previous year, reflecting the long shutdown of Maari and slightly lower world oil prices.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content