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Elevate Magazine
November 28, 2024

Todd Energy to Continue Drilling Operations Next Year

todd energy

Photo source: Todd Energy

Todd Energy is set to resume its oil and gas drilling activities in 2025, following a year of inactivity in 2024. 

At the recent Taranaki Energy Resource Forum, Todd Energy’s chief executive officer, Mark Macfarlane, outlined the company’s plans to launch a new drilling program next year at its Mangahewa onshore oil and gas field, situated 20 kilometres northeast of New Plymouth.

“Depending on the success of this programme, future development and further appraisal of existing fields will be considered,” Todd Energy said in a statement.

Todd Energy is strategically positioning itself in response to the ongoing natural gas shortages that have led to soaring wholesale electricity prices during peak demand periods. The company has announced its intention to keep the offshore Taranaki permit for Karewa open as a potential natural gas development option. This decision reflects a proactive approach to ensuring future energy security, particularly if supply from the permit becomes crucial due to evolving economic and regulatory conditions. 

The Karewa block, located off the coast of Raglan, has a storied history in New Zealand’s energy sector. Originally acquired by Conoco in 1993, the permit was fully obtained by Todd Energy in 2003, when the company announced a significant discovery of approximately 150 billion cubic feet of gas. 

The Mangahewa and Kapuni fields are producing at daily average rates comparable to those of the OMV-owned Maui field.

Together with the Pohokura field, they constitute the majority of New Zealand’s remaining oil and gas production, despite a sector facing declining output. This decline persists even as the government seeks to encourage new exploration following Labour’s previous ban on offshore oil and gas exploration.