Important facts about petroleum exploration

Energy and Resources Minister Gerry Brownlee has today moved to clarify a number of issues around the government's issuing of a petroleum exploration permit to Brazilian company Petrobras for 12,333 square kilometres in the Raukumara Basin off the North Island's East Cape.


"The government is acutely aware of the need to manage the potential environmental impacts of drilling for petroleum, both within the 12 nautical mile limit around our coast and beyond, in our Exclusive Economic Zone.


"Indeed we were acting on this very issue prior to the catastrophic oil spill in the Gulf of Mexico. That is why the government has established the Environmental Protection Authority, which we campaigned on at the last election.


"Work is under way right now by the Environment and Economic Development Ministries to strengthen the regulatory environment in New Zealand's EEZ - the area which falls outside the jurisdiction of the Resource Management Act.


"We are determined to ensure New Zealand's marine environment is properly protected as we expand petroleum exploration and development in the EEZ.


"I also want to address the suggestion that the government did not consult iwi over the Raukumara Blocks Offer.


"I was prepared to publicly apologise to East Coast iwi when they suggested immediately following the permit award to Petrobras that consultation had not met their expectations. I was happy to undertake to see that things are done better in future and remain committed to that.


"However, the suggestion that no consultation took place is incorrect. I am today releasing a chronology of what consultation occurred, and with whom, to clear this matter up.


"In any event, oil and gas have been nationalised minerals since 1937 and that status will not change under the government's Foreshore and Seabed legislation.


"Finally, I wish to make it clear that the Raukumara Blocks Offer is far from out of the ordinary.


"This government has a policy of advancing the exploration and production of nationalised resources in the public interest. Oil was New Zealand's fourth largest export earner in 2009 and third largest in 2008.


"The Raukumara Blocks Offer is but one of a number of areas up for offer to domestic and international petroleum companies who might wish to explore New Zealand's offshore basins.


"Between 2003 and 2008 there were 33 petroleum exploration permits awarded under nine separate blocks offers, including the 21,460 square kilometre PEP 38344, which extended out from the foreshore from the tip of East Cape down to Cape Kidnappers in the Hawkes Bay.


"I am also releasing details of other blocks offers and existing exploration and drilling activity to provide some much needed context to this issue.


"New Zealand will have proper environmental protection covering petroleum exploration and production in our EEZ, just as we have appropriate controls in place out to the 12 nautical mile limit under the Resource Management Act," Mr Brownlee said.



Offshore Exploration Activities in New Zealand as at June 2010 (pdf, 20 Kb)
Chronology of engagement with iwi: Raukumara Blocks Offer (pdf, 34 Kb)