Firms want to join oil hunt

Press, 18 August 1979, Page 1

Firms want to join oil hunt

PA New Plymouth Private oil companies are; stepping lip their campaign for a slice of the Taranaki oil and gas exploration action.

Shell BP and Todd Oil Services, Ltd, and L and M 1 Oil N.Z., Ltd (whose partner is Acquitaine), confirmed yesterday that there had been a series of exchanges of correspondence with the State-formed exploration company, Petrocorp, over the possibility of joint on-shore ventures in Taranaki. Firm proposals are likely to be put to Petro- . corp soon but the companies face long and difficult negotiations in their bid to persuade Petrocorp to agree to joint ventures in Taranaki, where the companies see the most attractive on-shore exploration potential. Petrocorp announced last month that it would not retain its exclusive rights to on-shore exploration in New Zealand and that a number of licences which expired would either not be renewed or would be renewed and open to joint ventures with other companies. Petrocorp’s chairman (Mr F. W. Orr) said at the time that the company would not relinquish its Taranaki licence and would continue to go it alone in that area. A Shell BP and Todd spokesman in Wellington said yesterday that his

company’s main interest was in on-shore Taranaki. L and M Oil is particularly interested in getting back into Taranaki after spending more than $500,000 in exploration before 1973 when its licence expired. Like Shell BP and Todd, L and M Oil did not continue on-shore activities because of alleged unattractive and tough conditions attached to the terms of relicensing. An L and M spokesman said yesterday: “We have been speaking with Petrocorp for some months and will have further discussions next week.” Petrocorp’s general manager (Mr T. Hogg) said yesterday that companies had made approaches. Asked if Petrocorp was determined to go it alone in Taranaki, Mr Hogg said only that the company had made extensive surveys, had already spent a lot of money in Taranaki and other places, and at present had its own programme. The reaction of companies to Thursday’s Government tax package is cautious. The chairman of Shell BP and Todd (Mr D. H. Tudhope) described the package as a compromise. His company had applied for two licences, one off the Taranaki coast near Kawhia and the other onshore in Taranaki, which it hoped to explore in partnership with Petrocorp.