How Horizon Oil’s 10-Year Maari Permit Extension Could Transform Production
Horizon Oil and its partners have secured a ten-year extension for the Maari oilfield permit in New Zealand, enabling continued production and strategic planning through 2037. This comes as the field hits its highest output in over five years.
- Ten-year extension granted for Maari permit until December 2037
- Extension approved without additional work program obligations
- Maari production increased to over 5,600 barrels per day in August
- Extension supports production enhancement and orderly decommissioning
- Aligned with New Zealand government’s push to revitalize oil and gas investment
Permit Extension Secures Future for Maari Oilfield
Horizon Oil Limited, alongside its partners in the Maari Joint Venture, has received a significant boost with the New Zealand Petroleum & Minerals Department granting a ten-year extension to the PMP 38160 permit. This extension prolongs the permit’s validity from December 2027 through to December 2037, providing a decade of operational certainty for the offshore Maari oilfield.
Notably, the extension comes without any new work program obligations, allowing the joint venture to focus on optimising production and planning for the field’s eventual decommissioning without regulatory pressure to accelerate exploration or development activities. This regulatory confidence underscores the maturity and economic viability of the Maari asset.
Production Gains Reinforce Asset Value
The timing of the permit extension coincides with a marked increase in production rates at Maari. In August, output surged to more than 5,600 barrels of oil per day, the highest monthly figure recorded in over five years. This uptick followed recent well workovers, demonstrating the field’s ongoing potential despite its mature status.
Horizon’s CEO Richard Beament highlighted that the extension not only secures the ability to continue producing safely and efficiently but also provides the necessary runway to mature production enhancement opportunities. This strategic flexibility is crucial for maximising returns while responsibly managing the asset’s lifecycle.
Strategic and Regulatory Context
The extension aligns with recent legislative changes by the New Zealand government aimed at reinvigorating investment in the oil and gas sector amid growing concerns over energy security. Horizon’s collaboration with the operator OMV and other joint venture partners, including Cue Energy and Total, has evidently fostered a strong relationship with regulators, facilitating this favourable outcome.
Looking ahead, the joint venture is positioned to balance disciplined value extraction with stringent environmental and regulatory standards, particularly as it plans for the eventual decommissioning of the Maari Project. This measured approach reflects a broader industry trend towards sustainable management of mature oil and gas assets.
Bottom Line?
With a decade-long permit extension secured, Horizon Oil is set to capitalise on Maari’s renewed production momentum while navigating the complexities of asset maturity and regulatory expectations.
Questions in the middle?
- What specific production enhancement projects are planned to sustain or grow output?
- How will the joint venture approach the financial and environmental challenges of decommissioning?
- Could further legislative changes in New Zealand impact the operational strategy at Maari?