New drilling to be undertaken by Shell

Royal-Dutch-Shell-drillRoyal Dutch Shell Plc has decided to start the drilling and study the region near the New Zealand coast in the upcoming month. It is expected that drilling could increase the lifespan of the Maui gasfield.

The New Plymouth-based company has stated that the Noble Discoverer has undertaken to drill the Ruru well for Shell Todd Oil Services Ltd. Shell Todd is equally owned by Todd Energy Ltd and the Hague-based Shell having 50 percent of each.

Shell Todd explained that Ruru is about 40 kilometers (25 miles) off the nation's North Island and nearby the Maui gasfield. On the company's website, it was released that Maui was undertaken before 30 years ago and it has been extended to near about 157 square kilometers.

The Dominion Post has reported that the cost evaluation of this well is expected to be NZ$70 million ($53 million).

The exploration permits of the well is carried out by Shell, Vienna-based OMV AG and Todd Energy having more than 80 percent, 10 percent and 6.25 percent stake respectively.

The Petroleum Exploration and Production Association of New Zealand have alleged that during 2009, 19.6 million barrels of oil and 180 petajoules of gas were produced by the nation from the Taranaki region.