Govt promise on oil exploration

Megan Woods
Megan Woods
Companies with existing oil and gas exploration permits will not be hindered in progressing their work programmes, Energy and Resources Minister Megan Woods said yesterday.

She was challenged by National energy spokesman Jonathan Young to confirm permit holders could potentially progress towards ''their full programme of work'' if warranted.

He said Dr Woods told delegates at the annual New Zealand Petroleum Conference they had nothing to worry about, as their existing permits and work programmes would be protected.

''However, in a recent answer to a question in the House she refused to confirm that a company with an exploration permit would have an open pathway to the next step of gaining a petroleum mining permit, should their exploration prove successful,'' Mr Young said in a statement yesterday.

Dr Woods' office said when contacted both she and the Prime Minister Jacinda Ardern had been ''crystal clear on that point''.

''We have said that existing permits, both mining and exploration, will be honoured.

''Of course, anyone with an exploration permit will have to go through the appropriate application processes,'' was Dr Woods response to Mr Young's question.

Since becoming energy and resources minister, Dr Woods had granted approval for exploration permit holder New Zealand Oil & Gas, issued under the previous government, to have time extensions to consider offshore test drilling off Oamaru.

At the time Dr Woods said she had advice that to decline the application could have resulted in a judicial review.

The Government has the Crown Minerals Act under review at present and this week Dr Woods stalled on announcing whether there would be the usual annual Block Offer 2018 announcement; where prospective onshore and offshore blocks are put up for international tender.

A decision from Dr Woods on the block offer issue is expected in ''coming weeks''.

It appears that decision will be the first real test for the Labour-led Government on whether it will actively curtail new oil and gas exploration, which increasing numbers within environmental groups are demanding.

Mr Young said the current permitting process gave companies surety that when they won their right to explore they could secure a permit to enable them to move into production.

He said any uncertainty which might undermine that process would have significant ramifications for the industry.

simon.hartley@odt.co.nz

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