April 2020
COVID-19 industry update
New Zealand has now moved into COVID-19 alert level 3 for an initial period of two weeks.
The criteria for businesses to operate has moved from 'essential' to 'safe'. This definition is largely done through self-assessment along with guidance from the Government.
We expect that all oil and gas fields should be able to re-start operations, providing there are appropriate safety precautions in place (under level 4 it is only fields producing natural gas deemed as essential). PEPANZ has worked closely with Government officials to enable this to happen.
You can find more information at this Government website, including safety management plans, health and safety checks and inter-regional travel.
At the request of the Ministry of Business, Innovation and Employment (MBIE), PEPANZ has also been preparing a list of risks for the sector arising from the COVID-19 virus and response. We expect to send this to MBIE in the next few days.
PEPANZ continues to talk regularly with our members and the Government. If you have any issues you would like us to raise, please contact john@pepanz.com (021375061).
New oil and gas discovery in Taranaki
OMV's exploratory drilling in the Taranaki Basin has returned positive and exciting results, with exploratory drilling 50km off the Taranaki coast showing positive findings for hydrocarbons (oil and gas).
The news was widely featured in the media and publicly welcomed by PEPANZ.
“Reports of the demise of our sector have been greatly and prematurely exaggerated,” says PEPANZ Chief Executive John Carnegie. “This is good news at a time when New Zealand’s economy really needs it.
“There is still plenty of work to be done before any development is confirmed, but the potential benefits to Taranaki and all New Zealand are substantial."
A report released by energy analyst John Kidd estimates successful development of the field could generate over $1.6 billion in taxes and royalties to the Government.
Concerns raised over RMA reforms
PEPANZ and Straterra have raised concerns over proposals to expand the role of local councils into climate change mitigation under the Resource Management Act.
"This would add confusion, complexity and duplication, opening a a can of worms that could delay all kinds of major projects and encourage litigation. This is the last thing we need as we rebuild our economy from the COVID-19 crisis,” says Straterra CEO Chris Baker.
“We support the drive to lower emissions but it’s important we do this in the most efficient ways at least cost to New Zealanders,” says PEPANZ CEO John Carnegie.
“Councils are not at all equipped to judge on the climate change effects of business activities, and there is also the risk of inconsistency between different regions.”
“It’s also very concerning these changes have been inserted so late in the select committee process with no opportunity for public consultation. It makes a mockery of the Resource Management Review Panel’s process when they have been considering submissions on this very issue.”
PEPANZ Regulatory update
*Offshore financial assurance
Last Friday the Ministry of Transport advised that the Associate Minister of Transport has signed the Marine Protection (Parts 102 and 131) Amendment Rules 2020. The rules were gazetted on 23 April 2020 and will come into force on the 27 May 2020. They can be found here.
Following several years of engagement from the sector calling for market standard insurance to be accepted, it is pleasing to see the market standard “EED 8/86” specifically referenced. We are undertaking a detailed review of the rule, and understand that links to the amended rules and industry guidance will be made available on Maritime New Zealand’s website shortly.
*EEZ Act
Trans Tasman Resources is going to appeal a decision by the Court of Appeal overruling its bid to mine ironsands off the coast of Taranaki. PEPANZ has been following this closely and assessing the implications for the oil and gas sector.
*Decommissioning
PEPANZ is working with the Ministry of Business, Innovation and Employment on decommissioning policy. We understand that timing for policy decisions on legislative reform has been brought forward and we will be in touch with members again shortly.
Please contact PEPANZ Policy Manager Joshua O'Rourke for further information: joshua@pepanz.com or 0223680158.
Every month we'll be profiling different PEPANZ members, highlighting the range of skills and services in our local industry.
Member profile: BTW
An innovative and solutions-focused group, BTW Company (BTW) is made up of 70 professional surveyors, civil and structural engineers, planners, UAV pilots, environmental scientists, 3D scanning specialists, and land and GIS experts with unparalleled experience on national and international projects.
BTW’s knowledge and expertise in the NZ Energy sector is based on over 45 years of experience, an appetite for applying the very latest technology, and in continual development of their systems.
Some recent examples of their work include:
surveying and civil engineering at Todd Energy’s Mangahewa-G and Kap-J wellsites;
3D Laser scanning and modelling projects for OMV on the Maui Platforms; and
environmental monitoring on the Maui pipeline for First Gas.
BTW operates from offices in New Plymouth and Hamilton, and delivers successful outcomes to clients for their projects located throughout New Zealand and overseas.
PO Box 25259, Wellington 6146
