Jadestone Energy to buy OMV’s 69% stake in Maari Project, New Zealand

Singapore-based Jadestone Energy has agreed to acquire an operated stake of 69% in the Maari Project in the offshore Taranaki basin, New Zealand, from OMV New Zealand, for $50 million.

The Maari Project is a mid-life producing asset within permit PMP 38160, which is contained in 100 metres water depth, nearly 80 kilometres southwest of North Island.

The offshore New Zealand oil project is made up of the Maari oil field and the Manaia oil field, which are being produced through a self-elevated jack-up wellhead platform, an FPSO, owned by OMV and its joint venture partners – Horizon Oil (26%) and Cue Taranaki  (5%).

Johann Pleininger – OMV Board Member Upstream and Deputy Chairman of the Executive Board said: “The divestment of the Maari Field further optimizes our portfolio and will shift us in New Zealand to a gas-only producer. This underlines OMV’s strategy to produce significantly more natural gas than oil to reduce the carbon intensity of the product portfolio in the future.”

Jadestone Energy to acquire OMV’s 69% stake in Maari Project. Photo courtesy of C Morrison from Pixabay.

The Maari oil field and the Manaia oil field have a combined 2P reserves of 13.9 mm bbls of oil. The current production of the two New Zealand oil fields is about 4,000-4,500 bbls/d.

The Maari Project has been in production since 2009 and had reached peak production of 16,400 bbls/d in 2010.

Based on their current 2P reserves, the two New Zealand oil fields are estimated to produce until 2031. However, Jadestone Energy reckons there is considerable potential for capturing reserves upside in the 2P reserves.

Paul Blakeley – President and CEO of Jadestone Energy said:  “Adding the Maari Project to our growing portfolio of high-value assets in the Asia Pacific region demonstrates our ability to bolt on new assets and provides more than a decade of additional free cashflow, even in the 2P reserves only scenario, as supported by our external reserves audit.

“The Maari project adds both significant additional opportunity as well as diversity to our operations.

“New Zealand is a natural strategic fit for Jadestone, where we see many shared values with regards to sustainable energy investment, through maximising recovery of existing resources and world-class expectations for health, safety and environmental stewardship.”

The transaction is expected to be closed in the second half of 2020 and is subject to satisfaction of conditions such as acceptance of Jadestone Energy as operator by the Maari joint venture partners, approvals from the New Zealand government and other customary conditions.