Oil exploration ‘vital’ to country’s future
AMID heavy security, Energy Minister Simon Bridges highlighted the Government’s interest in promoting non-renewable energy resources at an oil industry conference in Auckland yesterday.
With protesters mustered outside the SkyCity conference centre and security guards searching the bags of all attendees, Bridges told delegates at the Downstream conference that more exploration was vital to the country’s future.
‘‘The fundamentals haven’t changed,’’ he said. ‘‘Energy companies can – and must – look past the immediate and take a longterm view if they are to fulfil world energy aspirations into the future.
‘‘In short, surety in petroleum production tomorrow requires continued exploration today.’’
While New Zealand had an advantage in renewable energy, ‘‘the role of non-renewables, including oil and gas, should not be understated’’, Bridges said.
He used the conference to invite bids for a further seven exploration permits being offered by the Government this year.
The offer includes three onshore areas – one in the Taranaki Basin and two in the West Coast Basin. The four offshore areas are in the Reinga-Northland Basin, Taranaki Basin, Pegasus Basin and Great South-Canterbury Basin.
Bidders were required to provide a detailed plan of how they would do the exploration work and show they were technically and financially capable of carrying it out.
Permits may be granted for up to 15 years.
Bridges said that the Government was committed to attracting major international companies to invest in exploration and the development of oil and gas resources.
‘‘Oil is our fourth-largest export, and brings in around $700 million each year in royalties and taxes. This money is invested back into our communities in key infrastructure projects like roads, schools and hospitals.
‘‘It is clear that companies are seeking frontier acreage and longterm opportunities like those New Zealand has to offer.’’
The total area included in the tender is 429,298 square kilometres – 4093 sq km onshore and 425,205 sq km offshore.
The tender closes on September 30.
Permits are due to be granted in December.