Kupe joins “Big Four” in oil and gas production

Kupe joins “Big Four” in oil and gas production

Commissioning today of the last of the “Big Four” Taranaki energy projects, Kupe, that has a value of several billion dollars re-emphasises the strategic importance of oil and gas production to the nation, says the Petroleum Exploration and Production Association of New Zealand (PEPANZ).

Executive Officer John Pfahlert said a significant message that comes through for policy makers is that encouragement for such exploration and development must not be downgraded in central government policy making.

“This industry provides a secure energy supply for economic activity and growth. Its contribution to export income, at a time when the Government is desperate to grow overseas returns, is massive – some $2 billion yearly depending on fluctuating international prices. More than 85 percent of output is sent abroad.”

He said Kupe joined Pohokura, Tui and Maari as energy production enterprises that in the new decade would underpin both the Taranaki and New Zealand economies.

“America has Texas with oil, gas and Longhorns. New Zealand has Taranaki with oil, gas and Friesians. Expansion of our reserves both in the province and in other regions of the country would further benefit the underlying strength of the economy following the recession and reduce the need for additional overseas borrowing.”

Mr Pfahlert said that with Kupe coming into production the oil and gas industry contributed more value than dairying to the Taranaki economy – some $800 million compared with about $750 million from the dairy sector.

In addition to foreign exchange earnings, corporate and other taxes, Kupe is expected to –

ENDSends

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