US oil company Anadarko is on its way to Otago to drill for oil and gas, despite having no luck in Taranaki. The company had been exploring in the region since November last year.
Anadarko's drill ship and protest boat the Vega. Photo: GREENPEACE
The Texas company confirmed to Radio New Zealand on Tuesday that it drilled to the maximum limit of 4600 metres and, while it had found small traces of oil, it was nowhere near enough to be commercially viable.
The drilling sparked a flotilla protest and an unsuccessful High Court battle challenging the company's Anadarko's right to explore.
The company's New Zealand manager, Alan Seay, said Anadarko has proven to New Zealand that it can drill for oil safely.
But environmental organisation Greenpeace, which took the court action, said that is no indication that there won't be problems on another well.
Anadarko's drilling ship is now on its way to a site off Otago in the Canterbury Basin. The company said modelling shows that site looks more promising.
Prime Minister John Key said on Tuesday it was disappointing that oil hasn't been found in Taranaki as a discovery there could have had vast benefits for New Zealand.
"It's disappointing from Anadarko's point of view and from our point of view because, of course, that would be great for New Zealand if there was significant oil findings there. My understanding is they're moving on to other parts of New Zealand - hopefully they'll be more successful there."
