Petroleum Action Plan
New Zealand’s largely unexplored petroleum resource could be one of the country’s most significant economic opportunities.
Launched on 18 November 2009, the aim of the Petroleum Action Plan is to ensure New Zealand is able to maximise the gains from the responsible development of our oil and gas resources.
The Petroleum Action Plan comprises a number of core workstreams including:
Action 1: Explicitly positioning Government as pro-active and pro-development of petroleum resources.
This will include a sustained communications strategy aimed at raising the profile of the petroleum sector and signalling government support for exploration and development activity.
Action 2: Developing a co-ordinated investment strategy to improve knowledge of New Zealand’s petroleum resources.
The Government has already committed significant resources to the provision of geo-scientific data through its seismic programme. Current and future expenditure needs to be targeted to ensure that it develops a greater understanding of our petroleum resource – both for the purposes of the strategic management of the resource and for maximising investor interest in exploration and development.
Action 3: Conducting a short focused review of the Crown’s capability and resourcing to manage our petroleum estate.
Greater Government leadership and focus on the petroleum sector will raise expectations about agency capability, performance, profile and co-ordination (principally of the Ministry of Economic Development). A short focused review would look at the scope and levels of capability required to manage and maximise the returns from this significant resource.
Action 4: Improving the quality of information provided by industry participants to Government of the Crown’s petroleum resources.
The quality of petroleum reserve data has become a source of concern as annual reported reserves have fluctuated substantially from one year to the next.
Action 5: Reviewing our regulatory, royalty and taxation arrangements for petroleum.
This will ensure that refinements to the design of a regulatory and royalty regime provides the Government with a fair and equitable share of the value of New Zealand’s petroleum resources based on the findings of the AUPEC report.
Action 6: Reviewing and, where necessary amending, the legislative framework of the petroleum sector.
Specific actions could include clarifying government powers to assess options from a national interest perspective through the Crown Minerals Act and amending our existing permitting regimes to improve the longevity and productivity of our fields.
Action 7: Undertaking further work to develop a pathway for realising the potential of New Zealand’s gas hydrates endowment.
Action 8: Review health, safety and environmental legislation for offshore petroleum operations.
Undertake a review of health, safety and environmental legislation in New Zealand and other jurisdictions to assess the adequacy of New Zealand’s regulatory environment for offshore petroleum operations.