Greywolf Resources, the mysterious Australian mining company, appears to have contributed to an overhaul of the way New Zealand allows companies to apply for oil exploration permits, with key changes proposed today.
Acting Energy and Resources Minister Hekia Parata revealed proposals to offer a set number of exploration permits annually as part of a plan to increase the amount of revenue generated from royalties from oil and gas fields.
It would replace a current system where mining companies can apply to explore virtually any part of New Zealand, with the Economic Development Ministry is forced to put the application out for public consultation, no matter how unlikely it is that the permit would be granted.
The proposed plans would provide around 30 blocks where the Government was inviting interest.
Ms Parata said the ”first in, first served” system needed an overhaul.
”The process we have been using thus far is no longer fit for purpose. We want to have greater certainty about what we’re permitting, what acreage is available,” Ms Parata said, claiming the plans would add transparency to the process of granting permits.
”It will give certainty to industry to bid, but it will also give transparency to our communities who want to be part of the process and have their interests and concerns heard.”
The plans appear designed to counter the actions of companies such Greywolf, which is now the subject of a Serious Fraud Office investigation, apparently over its claims of Chinese financial backing.
Greywolf generated widespread protest after it announced plans to explore for oil and gas is some of New Zealand’s most pristine areas, most notably Golden Bay, off the coast of Abel Tasman National Park.
The company, which has never mined in New Zealand, also applied to explore for oil, coal and minerals at sites including the Manawatu River,Kapiti Island, several sites in Tasman, Central Otago, Cape Farewell and Cape Foulwind.
The applications included marine reserves, coastal areas off national parks and the Nevisregion near Queenstown.
None of the permits were granted before the company abandoned plans to operate in New Zealand, shortly before the SFO investigation was announced.
Publishing the New Zealand Energy Strategy 2011-2021, Ms Parata said the Government remained committed to achieving 90 per cent its energy needs from renewable sources, but signalled plans to ramp up the amount of oil and gas drilling.
”Fossil fuels will continue to play an important role in the global economy. Around half of the energy we currently consume is from petroleum,” Ms Parata said.
”We can’t just turn off the tap in our journey to a lower carbon economy. We also can’t ignore the major economic opportunity that continuing global oil demand could provide New Zealand. Petroleum was our fourth biggest export earner in 2010.”
The Government published a report showing that New Zealand is set to earn more than $3 billion in royalties from oil and gas fields already in production.
However it signalled that this could increase to $12.7b with future discoveries, ”which would help pay for schools, hospitals, broadband and roads”, Ms Parata said in a statement.
”People want to be sure that the environment is protected and they also want jobs and growth.”
