NZOG (New Zealand Oil & Gas Ltd) welcomes the opportunity to comment on the Government's proposed Action Plan for petroleum exploration and production and the associated reports released in November 2009.
As an active participant (since 1981) in the upstream sector in New Zealand, NZOG supports the Government's aim of building on the work completed to date and maximising the gains from New Zealand's petroleum resources.
Summary
NZOG applauds the Government's enthusiastic attention to the petroleum exploration and production sector. - A comprehensive review of the Government's role in encouraging investment is the correct approach.
- There are a number of legislative and regulatory ‘tweaks' that can be easily made to improve efficiency and increase activity.
- The permit allocation regime needs to be overhauled.
- The royalty regime should be changed to remove the Ad Valorem royalty.
- The Government needs to target its resources better, particularly to Crown Minerals and research.
- There is no compelling case for direct Government investment in petroleum exploration and production.
- There is no compelling case for a comprehensive review of applicable legislation and regulations. Such a review would likely introduce an extended period of regulatory uncertainty which would discourage investment.
Please click on attachment below to view entire submission.
Submission on Petroleum Strategy [6.6MB]
