Analysts: New Zealand Crude Oil Output Poised to Decline
New Zealand’s crude oil production is poised to decline over the coming years, according to oil and gas analysts at BMI Research.
In a report sent to Rigzone, the analysts said the “chronic decline” in the country’s crude oil and liquids production “will not be reversed over the coming years, due to natural declines and insufficient exploration”.
“Crude output over the first four months of the year fell by 19 percent on year, largely due to output declines at the Maari, Pohokura, Kupe and Tui fields, responsible for nearly 60 percent of total production,” the analysts said in the report.
“Declining production will not be offset by new discoveries, as high development cost and frontier nature of New Zealand’s remaining underexplored acreages combine to keep investors at bay,” the analysts added.
BMI also stated that the government’s decision to ban future offshore oil and gas exploration will “compound New Zealand’s oil woes”.
In April this year, New Zealand Prime Minister Jacinda Ardern said the country will not grant any new permits for offshore oil and gas exploration.
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