Oil industry experts remain optimistic about petroleum exploration in New Zealand despite a big setback in Mexico.
Photo: 123RF
New Zealand is midway through its block offer, in which mainly foreign companies bid for the right to search for oil or gas in sectioned-off blocks of land and sea.
The process has been going for several years, but Mexico's version of the scheme has just fallen flat.
Mexico held its first block offer after eight decades of state control, and managed to sell off just two of the 14 blocks on offer.
The remaining 12 attracted either no bids or none that cleared Mexico's financial hurdle.
Companies that stayed away, such as Chevron and Exxon Mobil, would normally be keenly sought by the New Zealand authorities.
The Mexican failure comes as the price of oil hovers at a level well under half of what it was last year, which could disincentivise oil exploration.
There are fears that if a recently-negotiated deal between Iran and the West takes hold, more oil could be released on to the world market, increasing supply and depressing prices further.
However, New Zealand oil experts warned it is too soon to write off the country's block offer despite the failure in Mexico.
They said there were key differences, mainly in the financial arrangements for the deals, and the New Zealand Government was trusted in a way that the Mexican authoritiies were not.
The New Zealand block offer remains open for about ten more weeks.