Petroleum Blocks Offer Supported by Industry

Here is the link to the announcement on the NZ Petroleum and Minerals website:

http://www.nzpam.govt.nz/cms/news/2012/next-steps-towards-oil-and-gas-exploration

9 February 2012
Media Statement
Petroleum Blocks Offer Supported by Industry

The petroleum exploration industry has welcomed the announcement of new exploration acreage being released for tender.

Association CEO David Robinson said today that discovering more oil and gas reserves will make a significant contribution to New Zealand’s economic future and energy security.

“The local oil and gas industry is currently New Zealand’s fourth largest export earner, generating in 2011 some $400m in petroleum royalties for the people of New Zealand, with potential to grow significantly higher. A successful oil and gas industry in New Zealand means more jobs, investment, innovation; more taxes and royalties to help fund social needs and a secure energy supply for New Zealanders.”

“Oil and gas development in Taranaki has made a huge difference to the regional economy, and could do the same for other regions.”

The announcement today by the Minister of Energy and Resources, Hon Phil Heatley, signals an on-going intention by the Government to develop oil and gas reserves in sedimentary basins around New Zealand. The blocks offer, replacing the permit in time regime, has been long awaited by the industry and it is very encouraging to see the Government delivering on their promises.

Mr Robinson said that he was confident this offer will attract both local and foreign interest from companies with expertise in deep water exploration and that the annualised approach to blocks offer will attract investment from organisations attracted by New Zealand’s stable environment. He encouraged the Government to assess tenders in a timely manner and seek opportunities to streamline their processes.

“However we are aware that there is some concern among the public of the risks of deep water exploration. In that regard we can point to a 40 year track record of successful offshore well completion in this country, including in deep water. The Government will also have in place new offshore drilling regulations and a new environmental consenting regime by the time these permits reach the drilling stage. I would like to assure the public that our members are committed to the highest ethical and environmental standards and manage the risks associated with exploration very carefully indeed.” said Mr Robinson.

The sector directly employs some 4000 staff and generates export earnings exceeding $3b a year.

ENDS

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