One of the biggest economic stories of the year didn’t make it on to the front pages of either of NZ’s largest newspapers, but the decision of Brazil’s state-owned energy giant Petrobras to enter the NZ oil search could be a vital step in the transformatory process the Govt has embarked on, seeking to overhaul Aust’s living standards. Petrobras, as one authority said, “is not here for small oil, they’re obviously here for the big prize.” The $300bn company Petroleo Brasileiro has been awarded a five-year permit for much of the frontier Raukumara Basin, is likely to spend around $20m on acquiring seismic data, and if it commits to drilling, the outlay could reach as much as $150m.

Energy and Resources Minister Gerry Brownlee says it is exciting the company is coming to NZ. “Petrobras is an international giant and a world leader in development of offshore drilling technology and production. Given Petrobras’ expertise, this is an exciting step into areas of NZ until now unexplored.” Bids for the permits were opened after the Crown commissioned the acquisition of seismic data over the basin in 2007, and made the data available to exploration companies. Subsequently Chris Uruski of GNS told a petroleum conference all the elements of a petroleum system “appear to be there. We have source rocks, reservoirs and seals.” He added further seismic and drilling may prove the sub-basin to be economically important for NZ. But exploration will be a challenge. Any oil or gas may lie in waters 2000 metres deep and about 2000 metres below the seabed.

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