New Zealand Opens Kahili Offer

The New Zealand Energy and Resources Ministry has opened bids for the onshore Kahili gas field in Taranaki on the west of New Zealand.

The 5.99km² block was discovered in 2002 and a mining permit was granted in 2004, however, production stopped after the well unexpectedly filled with water.

The ministry anticipates that significant volumes of gas could remain in the area.

The bid offer includes the Kahili-1B well that was closed, but not filled.

Energy and Resources Minister Gerry Brownlee said that the area has a gas facility and pipeline at Kahili wellhead, which makes the gas volumes required for the field’s commercial viability low.

“Gas discoveries are important to New Zealand’s energy security and provide local employment and support regional growth and local businesses,” Brownlee said.

The block offer will close in early May 2010.