8. JONATHAN YOUNG (National—New Plymouth) Link to this
to the Minister of Energy and Resources
What reports has he received about gasfield developments in New Zealand?
Hon GERRY BROWNLEE (Minister of Energy and Resources) Link to this
I have seen a report that Greymouth Petroleum has recently announced the discovery of the Kowhai gasfield, which is predicted to yield 134 petajoules of gas and 3.2 million barrels of condensate over its life. The discovery of Kowhai will have a flow-on benefit for the economy and consumers, and is a welcome development as the Government seeks to make more of New Zealand’s natural resources.
Hon GERRY BROWNLEE Link to this
I have seen a report that the first gas and liquids from the Kupe gasfield have now started to come ashore. It is interesting to note that that was a discovery made quite some time ago, but it has only recently been developed. Over its life it is expected to produce 254 petajoules of natural gas, 1.1 million tonnes of liquefied petroleum gas (LPG), and 14.7 million barrels of light crude oil. When it is at peak production, Kupe is expected to provide between 10 and 15 percent of our annual gas demand.
Chris HipkinsWhat steps, if any, is he taking to ensure that the royalties regime will ensure that New Zealanders get their fair share of any wealth that comes from his promotion of greater offshore extraction of petroleum?
Hon GERRY BROWNLEE Link to this
Well, the gas royalty of course, if it is from oil, comes from onshore, as well. The member will have noted that recently I gave a speech in which I outlined—
Hon GERRY BROWNLEE Link to this
Well, if the member would like me to quote the speech word for word, I will. But I made it very clear that we are reviewing the regime to ensure that the New Zealand Government, and therefore the people of New Zealand, gets its fair share from the royalty regime. We have a very good regime in this country. It encourages development. We want to make sure that we get some of the very large cash flows that can come from those royalties.
What steps, if any, has he taken to ensure that the risk of an environmental disaster like the recent West Triton oil spill in the Timor Sea, where oil poured into the ocean for over 6 weeks until it could be capped, will be minimised if there is greater offshore extraction of petroleum in New Zealand?
Hon GERRY BROWNLEE Link to this
Quite apart from the environmental standards that are applied to any of the licences that are granted for people to operate in New Zealand’s territorial sea, there is, of course, the huge financial deterrent against environmental disaster. That means that the companies themselves are extremely aware of the need for safety in their operations, with a high degree of consideration for the environment. It is very interesting to note that the Tui Area platform—the floating production, storage, and offloading vessel—that operates out there is currently the host of a rather large seal colony, so I assume that indicates that it is a very clean environment for them to live in.