8. JONATHAN YOUNG (National—New Plymouth) Link to this
to the Minister of Energy and Resources
What is the Government doing to encourage exploration for oil and gas in New Zealand waters?
Hon GERRY BROWNLEE (Minister of Energy and Resources) Link to this
Last Friday I announced that over the next 3 years the Crown will spend $20 million acquiring and processing seismic information about New Zealand’s offshore subsurface geography. Petroleum exploration and investment companies will be able to use that data to assess the oil and gas potential of those prospective basins.
Hon GERRY BROWNLEE Link to this
Good seismic information is the first step towards understanding the hydrocarbon potential of any particular area. The previous surveys have resulted in $1.4 billion of expenditure by exploration companies. So far, for every $1 invested by the Government, explorers have invested a further $50, so it was very surprising that the previous Government chose to cancel what has been a very successful economic development project.
Hon GERRY BROWNLEE Link to this
Indigenous oil developments, like the Tui and Maari fields, provide economic benefits such as jobs for New Zealanders, and also help our balance of payments. For the 11-month production period ended 30 June 2008, the Tui joint venture paid the Crown $210 million in royalties and at least a further $250 million in related corporate taxes. This year will be no different. These are significant benefits.
David Garrett