OMV New Zealand is to spend $15 million refurbishing its new headquarters in New Plymouth, a move the oil and gas company says underscores its long-term commitment to Taranaki.
Construction on OMV New Zealand. Photo: Supplied
Spokesperson for the Austrian company, Matiu Park, said the project represented a significant cash injection into the region at a crucial time as the economy recovered from the Covid-19 crisis.
"Between 85 percent and 90 percent of the project budget will be spent locally in New Plymouth and with New Zealand suppliers. The upgrade involves primarily local tradespeople, skills and supplies and will revitalise this section of New Plymouth CBD with a large, new office investment in a building which has seen only minor upgrades during its lifetime," Park said.
New Plymouth company contractor, Clelands Construction, would lead the project which would involve 50 to 100 people from 25 different trades onsite at any given time. Award-winning local architectural firm BOON was leading the design work.
Pokohura Gas Field. Photo: Supplied
"The upgrades being undertaken by OMV include reroofing, fixing extensive leaking issues, installing double glazing; ultimately transforming the building into a valuable, high-quality office space," Park said.
Once completed, the building - which was being leased - would provide a permanent home for 300 OMV staff and contractors, and house the 24/7 control room for the Pohokura Gas Field.
New Plymouth mayor Neil Holdom welcomed news of the investment.
"I think it is excellent news and it's really good to see OMV making that long-term commitment and investment into a high profile building in the middle of our CBD."
Holdom said it was a sign the oil and gas sector expected to ride out Covid-19 disruption.
"It will be good for our trades sector but it is also an indication that the energy sector, while it is a commodities business and their fortunes do fluctuate, in the long term it is a business that has returned a huge amount of economic growth to the region and supported the economic growth of New Zealand."
In April, OMV reported a positive result at its Toutouwai-1 well off the coast of Taranaki, the third and final of its 2019/2020 exploration drilling campaign. The Gladstone-1, off the coast northwest of New Plymouth and Tawhaki-1 in the Great Southern Basin had been unsuccessful.
OMV's Senior Vice President, Australasia, Gabriel Selischi, said at the time that although it was still very early in the exploration process the discovery had the potential to be a significant result for the company in New Zealand.
Futher testing of the well was postponed due to Covid-19 restrictions as was the drilling of the Maui-8 exploration well.
The refurbishment works on the Gill Street building were scheduled to be completed in late 2020.
OMV inherited a lease on a Devon Street office in New Plymouth when it took over Shell's New Zealand assets in 2018 for about $800 million which chose not to renew.