Maui Development May Cost $300m

Press, Volume CX, Issue 32351, 17 July 1970, Page 14

Maui Development May Cost $300m

(New Zealand Press Association) WELLINGTON, July 16. The Minister of Mines (Mr Shelton) tonight described the Maui oilfield as “one of the world’s major gas and condensate structures.”

Speaking during the Budget debate, the Minister said that development of the Maui field could cost more than $3OO million. He made no mention of yesterday’s news of the disappointing crude oil results from Maui 4.

The field eould provide almost unlimited supplies of gas for the generation of electricity, and it could be that the capacity of the Whangarei oil refinery would need to be doubled because of the Maui discovery, Mr Shelton said. The Government was the driving force in the development of the oil refinery. “Built at a cost of S2om, this refinery was designed to meet the majority of New Zealand’s requirements for

■ oil fuels, with the resultant saving of overseas funds. “With the need for additional refinery capacity now apparent, the Government has under consideration the best way for this to be provided in the national interest,” he said.

“With the recent dramatic discovery of the Maui oilfield —one of the world’s major gas and condensate structures —it could be that this refinery capacity will require to be doubled.

“This field alone could provide a large proportion of our fuel needs and almost unlimited supplies of gas for the genration of electricity and for export overseas to earn miliioins of dollars in foreign currency.”

Mr Shelton said there had been some criticism of the Government for encouraging foreign investment to capitalise on these resources.

“But the important thing is to get these natural assets working for us—not to sit on I them." • ■ I

The development of the Maui oilfield alone could cost more than $lOO for every man, woman and child in the country.

“We have encouraged overseas investment, which will make a positive contribution to our economy, on the best and most favourable terms we can get,” Mr Shelton said.