5 April 2011
Media release: embargoed until 6.00pm Tuesday 5th April

Industry Support for more Petroleum Inspectors

The Petroleum Exploration and Production Association (PEPANZ) says the industry agrees that there needs to be more petroleum inspectors.

Increasing the capacity of the offshore petroleum inspector service is the number one recommendation of an Oceans Governance Report released today by the Environmental Defence Society.

PEPANZ Executive Officer John Pfahlert said that the report recommendation was one supported by industry.

“The fact that there is currently only one part-time inspector is a matter of real concern to the Association. Of course industry members take the appropriate steps to ensure they adhere to good oilfield practice, but there is also an onus on the Crown to provide an adequate inspection service to monitor and enforce Government regulations,” said Mr Pfahlert.

The industry also supports the EDS call for improved environmental legislation in the Exclusive Economic Zone.

“This is an issue which industry has been highlighting for some years. There is general acceptance that some improvement can and should be made to the regulatory environment, including improved opportunities for public participation,” said Mr Pfahlert.

However, Mr Pfahlert said that the issues should not be overstated and the degree of regulatory imposition needs to be appropriate.

“There are some regulatory gaps, but we need to recognise that the level of development activity both in the Territorial Sea and the wider EEZ is very low. There are only 5 offshore petroleum facilities in New Zealand waters, and, at most, two or three offshore exploration ventures operating at any one time. The regulatory response needs to be appropriate to the level of activity.”
Mr Pfahlert said the Association did not agree with the EDS call for a Royal Commission on Oceans Governance.

“This is quite unnecessary – there has been on-going dialogue between NGO’s, the Government and various industry bodies for the past 5 years on proposals for a new regulatory regime. Everyone knows what the options are and there is general agreement on a way forward. A Royal Commission would simply delay decision making for a further 2 years”.

Mr Pfahlert said that it was still to be decided whether the newly established Environmental Protection Authority, Maritime NZ or Regional Councils were best to administer the proposed regulations. “A case can be made for each of these, and it is up to the Government to get on and make the decisions.”

ENDS

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