Block Offer 2016 announced

Energy and Resources Minister Simon Bridges today announced that while Block Offer 2016 received a low number of bids in comparison to previous years, exploration activity is continuing.

As a result of Block Offer 2016, one onshore Taranaki permit will be granted to Todd Energy.

“The global downturn in the petroleum industry that began in late 2014 has had a profound effect on exploration expenditure worldwide”, Minister Bridges says.

Global bid rounds such as New Zealand’s Block Offer continue, though they are currently attracting lower interest and work plan commitments.

“New Zealand has had a very successful run since adopting annual block offers. From 2011 to 2015 companies have invested $7.7 billion in oil and gas exploration and production in New Zealand.

“Exploration continues despite the downturn and has resulted in New Zealand’s largest onshore and offshore 3D data surveys being undertaken in one year.

“Running annual block offers is important in providing certainty for investors, facilitated by a predictable, fair and transparent process.”

Information on the permit awarded and the Block Offer 2016 process is available at http://www.nzpam.govt.nz/cms/permits/petroleum/block-offer/2016.