Anadarko, Hyundai to Increase Stake in New Zealand Petroleum Block

   By Arpan Mukherjee 
 

WELLINGTON--Anadarko Petroleum Corp. (APC) and Hyundai HYSCO (010520.SE), the two major partners in a New Zealand oil and gas exploration permit in the Taranaki basin off the west coast of the North Island, will together take an additional 6.667% stake in the permit, an Anadarko official said Tuesday.

The move prevents New Zealand Oil & Gas Ltd. (NZO.NZ) from picking up the stake. NZOG earlier this month signed a conditional agreement to acquire the interest from Global Resource Holdings and Randall C. Thompson LLC, however the major shareholders had pre-emptive rights on the stake, which they exercised.

Global and Thompson had been looking to reduce their stakes to 5% each, John Pagani, external relations manager at NZOG, said. Global has an 11.111% stake and Thompson a 5.556% stake in the block.

"Instead of that [the stake] coming to us, it will instead go to Hyundai and Anadarko," Mr. Pagani said.

Andrew Knight, NZOG's chief executive, said in a statement that the pre-emption reflected the high potential of the permit, which covers 16,380 square kilometers with multiple prospects and leads.

Anadarko has a 50% interest in the permit, and is also the operator. Hyundai HYSCO has a 33.333% interest.

The block has "enough potential" to bring a drill ship for a drilling program, Alan Seay, a spokesman for Anadarko, said, without giving details on the potential size of the reserve.

Mr. Seay said Anadarko had already planned to bring a drilling ship to New Zealand to begin drilling in the Canterbury basin, off the South Island, in late 2013, and that the same ship would start drilling at the Taranaki block in early 2014.

Anadarko completed a seismic study of the Taranaki deepwater block late last year, he added.

-Write to Arpan Mukherjee at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires