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Good morning.

As Minister of Energy and Resources, it’s my pleasure to welcome and host you here, in Parliament, this morning to award permits for the Government’s Block Offer 2014.

We are here today because New Zealand has a petroleum potential that needs to be better understood. 

The oil and gas industry is already a vital part of the New Zealand economy.  Oil is our fourth largest commodity export after dairy, meat and wood, and oil and gas combined contribute more than $2.7 billion to GDP each year.

Energy and Resources Minister Simon Bridges today announced the award of 15 new oil and gas exploration permits as a result of Block Offer 2014.

Block Offer 2014 includes six onshore permits across the Taranaki, West Coast and East Coast basins, and nine offshore permits across the Reinga-Northland, Taranaki, and Pegasus basins.

Collectively the permits represent more than $110 million in committed expenditure on initial exploration which, if successful, could lead to further work worth more than $1 billion.

Energy and Resources Minister Simon Bridges says the Government’s planned investment of $8 million to acquire new aeromagnetic and petroleum data will greatly contribute to our understanding of geological prospectivity in New Zealand.

“Aeromagnetic surveys will be the main focus of this work, to provide more comprehensive data on our mineral resource,” says Mr Bridges. 

Following surveys of Northland and the West Coast region in recent years, the focus will shift to the Nelson/Marlborough region, Southland and parts of Otago. 

Energy and Resources Minister Simon Bridges has congratulated the Gas Industry Company (GIC) on ten years of successful operation as a regulator in the downstream gas sector in New Zealand.

“The GIC has worked closely with industry and Government to support investment, competition, and the efficient supply of gas to consumers.”

Since the GIC was established in 2004, competition at the retail level has increased, with ten gas retailers now competing for customers and the prospect of more new entrants.

Energy and Resources Minister Simon Bridges has welcomed the news that a new oil well has gone into production in Taranaki.

“OMV announced overnight that the development well MR-8A has successfully started production and is expected to produce about 4,500 barrels a day,” Mr Bridges says.

The well is one of five being drilled in producing and new reservoirs in the Maari field around 80 kilometres off the Taranaki coast as part of the $400 million Maari Growth campaign.

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits.

“Consultation now begins with iwi and local authorities in the areas being proposed for onshore and offshore exploration,” says Mr Bridges.

“This is an important first step in the Block Offer process and I encourage iwi and local authorities to take part.  Their feedback ensures that any areas of sensitivity are carefully considered before the 2015 tender round is finalised.”

Energy and Resources Minister Simon Bridges says the ASB Community Trust contribution to funding the insulation of houses in Auckland, as part of the Warm Up New Zealand: Healthy Homes programme, is an important example of partnership between Government and community organisations.

“Nearly 2000 low-income homes in Auckland will be insulated, with the Trust contributing $1 million in funding.  The proportion of Government funding will decrease from 60 per cent – the typical contribution as part of Healthy Homes – down to 33 per cent. 

The Government has today accepted Solid Energy’s decision not to pursue the Pike River drift re-entry project and committed to working with the Pike River families on next steps for the Pike River site, says Energy and Resources Minister Simon Bridges and Acting Conservation Minister for issues relating to Pike River, Nick Smith.

Energy and Resources Minister Simon Bridges has today welcomed the launch of New Zealand’s first region-wide wood energy heat hub that will help fuel the Southland economy.

Wood Energy South is a joint initiative between the Energy Efficiency and Conservation Authority (EECA) and Venture Southland that will partner with local businesses, schools and healthcare facilities to help them convert to cleaner, renewable wood burning technology. 

Energy and Resources Minister Simon Bridges says an agreement signed between the Energy Efficiency and Conservation Authority (EECA) and one of New Zealand’s largest trucking companies is a significant milestone for the Heavy Vehicle Fuel Efficiency Programme.

“EECA has been working with industry groups since 2012 to increase awareness of the potential for fuel efficiency and I am delighted the HW Richardson Group is now on board, with 800 trucks in 30 fleets nationwide consuming 19 million litres of fuel per year.