New Zealand Starts Block Offer 2017 Process
New Zealand’s energy and resources minister Simon Bridges on September 19 announced the start of the Block Offer 2017 process for awarding oil and gas exploration permits. Each year, the government runs the Block Offer, in which companies are invited to tender for permits to explore for oil and gas in a specific area. This helps the government decide when and where areas are made available for exploration.
Consultation with iwi begins now and will begin with local authorities from October 17 in the areas being proposed for onshore and offshore exploration. The discussion take place to help identify areas of significance or sensitivity that the minister needs to be aware of in deciding what blocks should be included in the tender.
“This is an important first step in the Block Offer process. Feedback from iwi and local authorities ensures that any areas of sensitivity are identified and carefully considered before the tender round is finalised,” Bridges said.
New Zealand’s energy and resources minister Simon Bridges (Credit: Govt of New Zealand)
Schedule 4 areas (including national parks and marine reserves) and World Heritage sites are excluded from the Block Offer process.
Consultation will take place on four proposed offshore areas, one proposed offshore/onshore area, and two proposed onshore areas, covering a total area of around 508,691 km2.
“I acknowledge the challenging low oil-price environment that industry is currently facing but we know commodity prices are cyclical. The government remains committed to providing a stable and predictable regime,” the minister said
The consultation period for Block Offer 2017 runs until November 18, 2016. The final tender area will be announced in March next year.
Shardul Sharma