Update: Offshore oil

The oil and gas industry in Taranaki currently contributes $2 billion to GDP and the government plans to expand activity, despite strong criticism from environmental groups and iwi fearful of the catastrophic effects an offshore accident could have.

However, in a setback to the Government’s plans, international oil company Anadarko announced in August it was delaying its arrival in New Zealand by a year, citing a $1 million a day price tag, and the lack of a suitable rig. Anadarko is 50/50 partners in the Carrick/Caravel Prospect, off the Dunedin coast, and Romney, off the Taranaki coast.

A second firm, Petrobras, announced in December it would relinquish its permits to explore offshore oil prospects in the Raukumara Basin, off East Cape. Petrobras is the world’s third largest oil company and said it pulled out of New Zealand after 2D seismic testing couldn’t locate adequate proof of oil possibilities. Petrobras has recently been struggling against rising inflation in Brazil, and is currently considering selling off a number of assets.

A major campaign against Petrobras was led by Greenpeace and the iwi Te Whanau a Apanui and included a protest flotilla which was intercepted by the New Zealand Navy. The groups are describing the pullout as a major victory, with Greenpeace climate campaigner Simon Boxer stating “the likelihood of oil from a deep sea blowout washing onto the beautiful beaches and coastline of the East Cape and Bay of Plenty just went down by 100 per cent”.

Treaty of Waitangi Negotiations Minister Chris Finlayson said the decisions by Petrobras and Anadarko were not influenced by political opposition.