Caspian Energy (CE): Mr. Bridges, how would you evaluate the results of the 2013 year for the energy sector of New Zealand? Could you, please, tell about the most important, in your opinion, energy achievements of the country for the last year?

Simon Bridges, Minister of Energy and Resources, New Zealand: The New Zealand Government has a mixed and balanced energy strategy.   We want to make the most of our oil, gas and mineral resource potential while building a high renewable and alternative energy future.  Above all, we are committed to developing our resources in a sensible, safe and environmentally friendly way. 

The energy and resources portfolio is closely linked to New Zealand’s economic growth opportunities.  Overall, 2013 was an active year for government and industry with a number of highlights.   

Government initiatives 

Improve energy efficiency and health outcomes 

Approximately 235,000 houses were retrofitted with insulation under the Government’s Warm Up New Zealand housing insulation scheme to improve energy efficiency and deliver better health outcomes.   This programme will continue in 2014, with a specific focus on low income households

Encourage development of our oil, gas and mineral resources 

Ten new petroleum exploration permits were awarded in Block Offer 2013 to local and international companies, including three new international entrants, Statoil, Woodside and Mont d’Or.   The Block Offer is the New Zealand Government’s competitive tender system to strategically manage the allocation of petroleum exploration permits. 

Improve regulation 

New Zealand’s regulatory framework was strengthened to ensure the responsible development of resources.   A new regulatory regime for health and safety in the petroleum industry was implemented, and environmental protection measures were increased. 

Regulatory agencies’ coordination on health, safety and environmental matters were also strengthened to ensure regulatory efforts are proactive, coordinated and focused on operations that have the highest technical and geological complexity.

Industry developments

Our success in promoting New Zealand’s potential for petroleum has resulted in the 2013/2014 summer being the busiest exploration season in New Zealand’s history, with 13 offshore wells to be drilled and up to 30 onshore.   Three drill rigs are in New Zealand over the season; the Kan Tan IV, the Noble Bob Douglas and the Ensco 107. 

We are learning more about our resources as a result of the significant onshore and offshore seismic survey activity this season.  Over 2500 square kilometers of 3D and 8000 kilometers of seismic information is expected to be acquired and this is likely to increase as more prospecting permits for surveys are applied for.  This is in addition to the Government’s investment in mapping New Zealand’s rich mineral potential. 

 Methanex, the global methanol producer has further increased its production capacity in New Zealand and can now produce 2.2 million tonnes of methanol per annum.  Methanex’s expansion indicates the company’s confidence in the supply of natural gas in New Zealand (which is used as a feedstock for methanol production). 

 Z Energy, a New Zealand based fuel retailer, made its Initial Public Offering on the New Zealand stock exchange – making it the first downstream fuel company to be listed on the stock exchange in New Zealand.