Tax exemption for oil and gas exploration welcomed
Media Release – for immediate release
14 May 2009
Straterra welcomes tax exemption for oil and gas exploration
Straterra, the industry group representing New Zealand’s natural resources industries, has welcomed Government plans to extend tax exemption for offshore oil and gas exploration.
Chief Executive Richard Michael said the measures, to be included in this year’s Budget, would encourage continued and further investment in New Zealand by the international exploration community, and underline the Government’s commitment to enhancing the potential of the country’s natural resources.
“The success of the Tui field and the Maari field has stimulated interest,” he said. “This latest move, following the announcement last week of $20 million funding to make seismic data freely available to the oil exploration industry, will certainly reinforce the message that the New Zealand Government welcomes exploration.
“Despite a recent increase in exploration activity in New Zealand waters, we have lagged behind many other countries in terms of investigating our rich supply of natural resources and it is very positive to see steps being taken to encourage further exploration in an area that has the potential to substantially boost our country’s economy.”
The Budget move, announced by Energy and Resources minister Gerry Brownlee and Revenue Minister Peter Dunne, makes provision for a five year continuation of an exemption for offshore oil and gas exploration that was due to expire in December this year. The exemption will now be extended until December 2014 to further encourage exploration of New Zealand’s offshore hydrocarbon basins.
Straterra, which was launched in September 2008, aims to provide a united voice for companies working in the oil, gas, aggregates, minerals, metals and coal industries. The sector has annual revenues exceeding four billion dollars and exports of around two billion dollars. Independent studies demonstrate the potential to double these revenues and provide much needed employment in the New Zealand economy.