Exploration manager Eric Matthews told EnergyReview.Net from Sydney today that NZOG wanted the Ngatoro partners to move away from the entrenched positions they held regarding the management of Ngatoro.

The appointment, by the US petroleum institute, of an independent expert would, hopefully, enable differences to be settled. NZOG had first mentioned calling in an independent firm, to determination the key issue of maintaining field reservoir pressure, in its September quarterly report.

"The expert, which could even be such a firm as Gaffney Cline or Maui adjudicator Netherland Sewell, might easily present the joint venture parties with a third option, an option no-one has even considered yet.

"However, we will not be able to choose whether we accept his decision, the parties will be bound by his ruling," said Matthews.

The engagement of an independent expert might cost the Ngatoro partners some thousands of Greenback dollars, but that would be money well spent if it quickly settled the future course of the field's management.

Netherland Sewell and Associates International's three-month investigation into the level of remaining Maui reserves is rumored to be costing the Maui parties well over $US1 million, with the NSAI report due to be completed next week.

Last month Ngatoro newcomer Greymouth Petroleum released its development plan for the field, which would effectively see the merging of the operations of Ngatoro and the nearby Kaimiro field, which Greymouth owns. However, fellow Ngatoro partners New Zealand Oil and Gas and Indo-Pacific Energy were caught unawares of Greymouth's plans to cut operating costs and boost production from the flagging onshore Taranaki field.

Matthews today said he did not want to be drawn into a slanging match, of NZOG proposal versus Greymouth plan, and he admitted some of Greymouth's suggestions had merit.

He doubted, though, whether the Ngatoro joint venture could now submit its chosen waterflood proposal for approval by the Ministry of Economic Development by next January, as the ministry had first requested.

NZOG's September report said that NZOG and Indo-Pacific approved the operator's waterflood proposal last May, but differences with Greymouth Petroleum prevented that from being implemented. NZOG therefore said it would be seeking a determination by an independent expert as to the most effective modus operandi.