Oil and gas Block Offer 2013 gets under way

Energy and Resources Minister Phil Heatley has welcomed the start of the Block Offer 2013 process for awarding oil and gas exploration permits.

The Ministry of Business, Innovation and Employment today released the proposed areas for onshore and offshore exploration – in Northland, Taranaki, the East Coast, Canterbury and Southland – and has started consultation with relevant iwi and councils.

“Oil and gas happily co-exist with agriculture and tourism in Taranaki to everyone’s benefit. The same formula can work just as well in other areas, growing the local and national economies,” Mr Heatley said.

“The existing oil and gas operations in Taranaki contribute $2 billion to our GDP and support over 5000 jobs in the region, underpinning what has become a very vibrant community.

“At national level, New Zealand’s current share of annual revenue is typically $400 million in royalties and $300 million in company tax. This equates to 42 per cent of company profit over the life cycle of an operation.

“We don’t necessarily expect exploration to be undertaken in all the blocks on offer, but we need to find out what’s out there and use that information to further develop New Zealand’s resource wealth.

“I encourage iwi and councils to participate in this process. Their feedback ensures that areas of sensitivity are carefully considered before the areas to be tendered are finalised.”

2013 will be the second year in which the Government will use a block offer annual competitive tender process to allocate permits for oil and gas exploration. Block offers replaced the Priority in Time (first-in first-served) process used in previous years.

The ministry is consulting with relevant iwi and councils between 9 November 2012 and 30 January 2013.

A map of the proposed blocks is attached.

Further information on Block Offer 2013 is available at www.nzpam.govt.nz/cms/petroleum/block-offers.