Barque

Location and Geology

• The Barque prospect is situated approximately 60 kilometers east of Oamaru, offshore New Zealand, in the Clipper permit (PEP 52717) within the Canterbury Basin.
• It is located in 800 meters of water and is identified as a large Cretaceous structural trap, covering an area of approximately 150 square kilometers. The target formations are located between 2,500 meters and 3,000 meters below mean sea level.

Ownership and Partners

• The project is operated by New Zealand Oil & Gas (NZOG), which holds a 50% stake in the Clipper permit. The remaining interest is held by Beach Energy.

Resource Potential

• The economic impact study (EIS) conducted in 2017, co-funded by New Zealand Trade & Enterprise, estimated that the Barque prospect has a resource base of more than five trillion cubic feet (tcf) of gas and light oil.

Exploration and Appraisal

• The joint venture of NZOG and Beach Energy completed the reprocessing of 1,250 kilometers of vintage 2D seismic data in 2013 and acquired approximately 650 square kilometers of high-quality 3D seismic data. This seismic data identified three target reservoirs: Barque Fm (primary), Herbert Sandstone, and Intra Paleogene 3.

Development Scenarios

Offshore Development Scenario

• This scenario involves the extraction of fluids through ten production wells, with processing on an offshore vessel for direct export to markets. Condensate will be separated, and the gas will be re-injected into the reservoir. Operations are expected to start in 2025, with an estimated extraction of approximately 460 million metric barrels of oil (Mmbo) over the field’s 35-year life. Onshore activities will be limited to servicing and maintenance.

Gas-to-Shore Development Scenario

• This scenario proposes the extraction of gas, oil, and liquefied petroleum gas (LPG) from 14 production wells, with transport to the shore through pipelines. The gas will be converted into methanol, fertilizer (urea), LNG, and used for industrial thermal/electricity generation, starting from 2025. Extracted oil will be exported directly, while LPG will either be exported or sold domestically. This scenario is expected to develop and transform the South Canterbury/Otago region due to the absence of an established gas market in the South Island.

Supply and Utilization of Gas

• Gas from the Barque prospect will be supplied to two proposed methanol plants, each with a capacity of approximately 1.7 million metric tonnes per annum (Mmtpa), and a 650,000 tpa capacity fertilizer plant. Methanex and Coogee Energy will own the methanol plants, while Ravensdown will develop the fertilizer plant. Additionally, Fonterra, a dairy company, has expressed interest in using the gas to switch its operations from coal to gas.

Contractors and Local Involvement

• MartinJenkins was contracted to prepare the economic impact analysis for the Barque prospect. Aoraki Development was engaged as the lead local agent of the project on behalf of the stakeholders.

Regulatory and Timeline

• The Energy and Resources Minister of New Zealand allowed the joint venture to determine a well commitment for the prospect by April 2022, extending the earlier deadline of April 2019. The project is currently in discussions with potential farm-in partners for the development of the field.