[Sitting date: 03 December 2014. Volume:702;Page:4. Text is subject to correction.]

4. JONATHAN YOUNG (National—New Plymouth) to the Minister of Energy and Resources : What update can he give on energy resources development in the Taranaki region?

Hon SIMON BRIDGES (Minister of Energy and Resources): Yesterday I welcomed the announcement by OMV that a new oil well has gone into production in the Maari field in Taranaki and is expected to produce around 4,500 barrels a day. OMV and its partners are investing more than $400 million in the five-well redevelopment Maari growth campaign. This project is estimated to help lift field production overall and extend the life of the field out to past 2023. It is great news for the industry, the Taranaki region, and all New Zealanders who benefit from the taxes and the royalties that this company will deliver.

Jonathan Young : What are some of the benefits from resources production in Taranaki and across New Zealand?

Hon SIMON BRIDGES : If we take OMV as a good example, since 2009 it has paid more than $850 million in royalties and taxes, with half of that alone coming from the Maari field. In total, the Government receives around $800 million in taxes and royalties from companies operating here each year, which helps pay for the schools, the hospitals, the roads, and other essential infrastructure. Also, the resources sector is an important employer in New Zealand. Over the past 10 years, employment has more than doubled, with workers typically earning more than twice the average New Zealand salary. The Government’s hard work through the block offer process and robust regulatory reform have delivered significant levels of activity, and we are committed to continuing to develop our resource potential in a safe and environmentally responsible way.

ENDS

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