interesting story to pass the time

Petrobras Wins Right to Explore New Zealands Raukumara Basin

June 1 (Bloomberg) -- Petroleo Brasileiro SA, Brazils state-controlled oil producer, has won its first permit to explore for oil in New Zealand waters.

The company, known as Petrobras, was today awarded the right to explore 12,333 square kilometers (4,760 square miles) of ocean in the Raukumara Basin north of East Cape. It will do seismic studies and has committed to drill one well within five years unless it chooses to surrender the permit earlier, Energy Minister Gerry Brownlee said in a statement.

New Zealands government accelerated studies of deepwater basins six years ago to lure larger, global explorers and help replace declining oil and gas reserves. Deep sediments and oil seeps offshore and on the North Islands Raukumara Peninsula make the basin one of the countrys most prospective frontier areas, GNS Science geologists said when exploration bids were invited in late 2008.

Petrobras is an international giant in this industry and a world leader in development of offshore drilling technology, Brownlee said in an e-mailed statement. This is an exciting step into areas of New Zealand until now unexplored.

Petrobras operates in 28 countries and in April joined its first project in Australia, taking a half of a potential gas development off Western Australia operated by MEO Australia Ltd. The Rio de Janeiro-based producer has proven reserves equivalent to almost 15 billion barrels of oil and is the worlds fourth- largest energy company, according to its website.

The exploration permit lies off the east coast and will be held by Petrobras International Braspetro BV. It runs from near the coast to 110 kilometers offshore and includes parts of two permits the government offered.

To contact the reporter on this story: Gavin Evans in Wellington at [email protected]

Last Updated: June 1, 2010 00:00 EDT