Oil hunt still on, says Mr Gair

Press, 30 November 1978, Page 2

Oil hunt still on, says Mr Gair

PA Wellington | Negotiations for two new! offshore oil exploration li- j cences are in progress, said 1 the Minister of Energy (Mr' Gair) yesterday. One of the consortia in-i volved in the talks with the' Government and Petrocorp was interested in a licence; for an area off the West! Coast of the South Island,: the other for an area north' of the Maui field. Mr Gair said the implies-1 tion that offshore oil explor-! ation in New Zealand had ended was quite wrong. “There is also a current li- i cence with a work com-' mitment in the Maui area,! held by Shell-BP-Todd, 1 which expires in 1980.”

I Mr Gair said the Govern-: ment has sent copies of its 1 ! proposed oil tax legislation , and provisions for [.articipaition deeds to several interested parties. “It is unlikely there will ! be any finality to discussions within the next few weeks,” he said. “But there iis no reason to suppose ! there will be a lengthy break in exploration work.” The movements of the I Penrod ’74 rig were entirely i i over to the Penrod Drilling' 'Company. : “The rig’s departure from! New Zealand waters does! : not preclude the possibility i ' of drilling by other rigs ! i which are readily available; Overseas,” Mr Gair said. Government and Petrocorp

■ officials were moving j j “steadily but not precipi- [ tately” in negotiations with prospective explorers. “It is important that the right answers be found — answers acceptable to both> sides,” Mr Gair said. “The oil companies need ■ every opportunity to digest i the details and implications r of the taxation and participation deed proposals. ;! “Inevitably we can expect ; some public positioning by ; I the interested parties in an i attempt to score bargaining J i points, but I am confident ; I that so long as the pace is inot forced further drilling {proposals will be concluded. ; “In the meantime, any oil 'that may be there won’t run taway,” Mr Gair said.