Source: New Zealand Government
Legislation reinstating offshore petroleum exploration has been introduced by the Coalition Government, a key step in addressing the significant energy security challenges felt by Kiwis across the country this winter.
The Crown Minerals Amendment Bill reverses the ban on new oil and gas exploration beyond onshore Taranaki, signals the Government’s intent to reinvigorate investment in petroleum exploration, aligns decommissioning settings with best practice and provides certainty for potential investors.
“This Bill delivers on commitments in both the National-NZ First and National-ACT coalition agreements and the Government’s promise to take urgent action to address energy security and affordability,” Resources Minister Shane Jones says.
“Natural gas is critical to a secure and affordable supply of energy in New Zealand – now and into the future. Our gas fields are in decline and without further investment in existing and new fields to increase production, supply issues and high prices will persist when generation from our renewable energy sources is at capacity.
“Limited gas supply doesn’t just make it more expensive to keep our lights on and our homes warm, it is squeezing our industrial users to the point that we are seeing production halting and large employers in regional New Zealand having to close their doors.
“On top of removing the exploration ban, this legislation will better balance the regulatory burden, risk of decommissioning and give the regulator more flexibility in how exploration permits are issued, giving the sector confidence to get to work.
“Our petroleum and mineral resources contribute billions of dollars to New Zealand’s GDP, create high-paying jobs and opportunities to develop skills and help to diversify regional economies. I’m not willing to let the significant benefits of this sector pass us by.”
A new tier of mineral permitting that will make it easier for people to undertake small-scale non-commercial gold mining activity is also introduced through the Bill.
The Bill is expected to have its first reading this morning and will be referred to select committee with the aim of passing legislation by the end of this year. To achieve this, the select committee process will be undertaken in a condensed timeframe.
For more information on the Bill, see 2024 Proposed amendments to the Crown Minerals Act 1991 | Ministry of Business, Innovation & Employment (mbie.govt.nz)
