Gas Exploration Incentives

The Government's policies and procedures for gas exploration and development [link to Crown Minerals website] are set out in the Crown Minerals Act 1991 [link to the Interim Website of New Zealand Legislation] and the Minerals Programme for Petroleum [1430 kB PDF] [link to Crown Minerals website] (released in January 2005). The Programme contains a suite of initiatives based around royalty reductions and the funding of seismic acquisition, both of which are designed to encourage petroleum exploration in New Zealand. Further encouragement has been provided to upstream exploration and development by the removal of tax disincentives as they relate to oil rigs and seismic ships.

On 14 June 2004, the Minister of Revenue, the Minister of Energy and the Associate Minister of Energy announced a suite of proposed measures to encourage exploration for new gas reserves.

Presentations have been released summarising the key issues around the gas supply demand situation, and the factors that will influence the petroleum industry to invest in the exploration of New Zealand's petroleum basins that are likely to lead to the discovery of new gas reserves. These briefings characterise the various options and issues associated with the application of incentives to help accelerate exploration activity. The briefings provide recommendations on various options and a package of exploration incentives that are likely to lead to increased exploration and the discovery of new gas reserves.

Documents

Cabinet Papers
Cabinet papers detailing gas exploration incentives, including tax initiatives, fiscal and legislative implications and supply and demand forecasts.
Questions and Answers for the Gas Exploration Incentives Paper
The Why, What and How pertaining to the Gas Exploration Incentives Paper.
Gas Exploration in New Zealand - Supplementary Report [ Published 17 May 2004 ]
Supplementary Report on gas exploration in New Zealand, with an analysis of options around the reduction of AVR, and amendments to the ring-fencing rules..
Presentations
Presentations to the Infrastructure Ministers, the Minister of Finance and the Minister of Energy, regarding New Zealand’s gas supply and demand, and proposed exploration for new gas reserves.
Media Statements
Ministerial statements regarding exploration for new gas reserves.