Brownlee Lists Benefits In Promoting Oil Exploration
May 14th, 2009
Energy and Resources Minister Gerry Brownlee, who has extracted an extra $20m for the seismic data acquisition programme run by Crown Minerals over the next 3 years, is also reviewing the minerals regime. He wants to make sure the structure of exploration permits is attractive to potential explorers. Brownlee backed up his argument for more money on the seismic programme by underlining the economic impact of offshore oil developments, which have provided decent financial gains for the Govt in the past two years.
For the 11-month period ended June 2008, the Tui joint venture paid the Crown $210m in royalties, and at least another $250m in corporate tax. It is estimated over the life of the field more than $1.5bn in forward nominal royalties will flow to the Crown, plus corporate tax on any accounting profits. Royalties from Pohokura are likely to average $200m. Kupe and Maari are expected to provide over $1.5bn over the life of the fields.
Following seismic data acquisition by Crown Minerals, the Govt has opened the Northland and Raukumara blocks to offers, and Crown Minerals staff are targeting explorers in North America, Europe, and Asia. Brownlee reports strong interest in the blocks. An intriguing aspect is Maori commercial interests are understood to be looking closely at how they can secure a stake in any exploration particularly in the Raukumara block.
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Duncan Cotterill