Oil and gas industry welcomes new ocean rules

Media Release
Petroleum Exploration and Production Association of New Zealand

Oil and gas industry welcomes new ocean rules

PEPANZ Chairman John Bay has welcomed the Government’s announcement that it will be introducing new rules covering activity in the Exclusive Economic Zone.
“Wise and internationally consistent rules will provide confidence for the oil and gas industry and comfort to New Zealanders that its resources will be developed safely, environmentally responsibly and for the benefit of all New Zealanders.

“The industry is already contributing over $2b a year to the New Zealand economy. These rules will ensure that the industry continues to grow in a safe and responsible manner.

“Maritime NZ and the Dept of Labour have had regulations in place overseeing oil and gas operations for some time now. While these applied to operations in both territorial waters within the 12 mile limit and in the EEZ beyond the 12 mile limit, the absence of an overarching regime governing the EEZ has been a gap we have wanted fixed for some years. We are all glad that a system to govern and permit activity in the zone is now almost ready,” Mr Bay said.

Mr Bay said the industry had been operating facilities outside the 12 mile territorial zone for some time, with a good safety and environmental record. “Of the 5 offshore fields currently in production, only one, the Pohokura field, is within the 12 mile territorial limit. The industry has been operating in the EEZ to the industry’s own rigorous best practice safety and environmental standards for more than 30 years.

He said the industry had been working with the Government for several years on developing the rules regime and would continue to provide input as they were developed.

“Our industry operates all over the world under a ‘best practice’ regime and we expect to be involved in fine tuning the New Zealand rules over the next few months,” he said.

The Exclusive Economic Zone and Extended Continental Shelf (Environmental Effects) Bill is still being drafted, but it is expected in Parliament next month and to take effect on 1 July 2012.

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