Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

NZOG to look offshore for new oil opportunities

NZOG to look offshore for new oil opportunities, no ímmediate impact on existing NZ operations

By Pattrick Smellie

April 12 (BusinessDesk) - New Zealand's only NZX-listed oil and gas explorer and producer says today's government announcements ending the issuance of offshore oil and gas exploration permits "will not have any immediate material impact" on its operations or earnings, but it will now start looking offshore for new opportunities.

"Potentially transformational New Zealand Oil & Gas exploration prospects in the Canterbury and the Great South Basins are unaffected by today’s announcement and the company is continuing to market these world-class prospects," NZOG's chief executive, Andrew Jeffries said in a statement.

NZOG shares fell 3.2 percent to 60 cents.

The company would "manage the risks associated with the government's policy change by investing in exploration and production assets in other jurisdictions".

NZOG is the permit-holder for the Barque exploration prospect, off the Canterbury coast, which Energy Minister Megan Woods said today held potentially "trillions of cubic metres of gas" which could still be exploited if NZOG made a discovery there.

"We are focusing on assets where our New Zealand capability can add value, with a preference for gas assets because gas is seen in most jurisdictions as a vital energy source for the
transition to a lower carbon world," said Jeffries, who described today's announcements as a "sudden change of policy" on which there had been no formal consultation with the industry.

The Labour Party campaigned before the 2017 election on a low-carbon future, 100 percent renewable electricity production by 2035 and a net zero carbon emissions economy by 2050 but the first suggestion it might end the six year-old practice of annually offering blocks of exploration territory to local and international oil industry players was on March 19, when Prime Minister Jacinda Ardern broke from her schedule to accept a Greenpeace petition calling for an end to oil and gas exploration.

Today's announcement ends only the offers for offshore exploration permits, with onshore Taranaki permits still to be offered for another three years, before that practice also is reviewed. Existing exploration and mining permits are unaffected by an announcement the government says is the first step in a 30-year "just transition" away from fossil fuels.

Jeffries said that while renewable sources of electricity could supply most of New Zealand's electricity needs in a year of normal rainfall, "another two-thirds of our national energy use is industrial and transport related, for which complete renewable alternatives are not currently economically viable".

"Therefore the choice for New Zealand is whether we use our own resources for our own benefit, or New Zealanders rely on overseas energy sources benefitting those economies."

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Land Report: Issues With Soil Degradation

An environmental report released today has found we are damaging and losing our soils and our native plants and animals. More>>

ALSO:

Water Quality Report: Cause For Optimism

National River Water Quality Trends released by Land, Air, Water Aotearoa (LAWA) this week, reveal that for all river water quality parameters monitored over a 10 year period, more sites were improving than deteriorating. More>>

ALSO:

IMF Report On NZ: Positive Economic Outlook

Minister of Finance Grant Robertson has welcomed the IMF’s Concluding Statement, released following its annual visit, which provides an independent assessment of the strength of the New Zealand economy. More>>

ALSO:

Retail Power Price: Review Panel Named

The Energy and Resources Minister Megan Woods has released the details of who will sit on an expert advisory panel which is tasked with leading a review into the price of electricity in New Zealand. More>>

ALSO:


Increasingly Disruptive Threats: Govt Cyber Security Refresh

Broadcasting, Communications and Digital Media Minister Clare Curran today announced a comprehensive refresh of New Zealand’s approach to cyber security. More>>

ALSO:


Regional Growth: Action Plan To Modernise Taranaki’s Economy

The Provincial Growth Fund (PGF) will invest up to $20 million to help future-proof the Taranaki region by diversifying its economy, creating additional jobs and leveraging off the strong base the region has established through its oil, gas and agricultural ... More>>

ALSO:

Winding Down Irrigation: Funding Ends For Crown Irrigation Investment

The Government has begun winding down public funding for large-scale irrigation through Crown Irrigation Investments Limited (CIIL), in line with the Coalition Agreement and the Confidence & Supply Agreement. More>>

ALSO: