Drilling off Coast soon

Press, 7 October 1980, Page 18

Drilling off Coast soon

PA Wellington Drilling for oil will start soon off the South Island coast near Greymouth, New ■ Zealand Petroleum Company's chairman (Mr C, C. [Shepherd) announced. ' l ' I “Negotiations are in hand! (for the use of a rig and I' : expect that a well will bei ; drilled mid-way in 1981,” Mr! Shepherd told the company's : annual meeting in Welling-1 ton. ! Shareholders’ questions rewealed that most of the capi-l i tai for the project came; •from American interests. I ■ Mr Shepherd declined to; 'name the companies, but]

said that New Zealand!’ shareholders are becoming a i rapidlv diminishing breed p and the Americans now con-p trol S 5 per cent of the com- i Pa One of die shareholders lestaimated. that the shar ®? ' . might be worth $3OO each i .'and suggested a split. 1 j “We have to offer thej I shares to all the share-i< holders and must get Amen-p jean approval before we canjs ’consider this.” ‘ He was not unduly conI cenied about royalty pa)*i iments. , J. I “At one time — when Iji ; first joined the company p | around 60 years ago, velt

were paying a one per an? 'royalty. It’s gone up to 1J 'per cent and it could go to 20 per cent. We hav| made submissions to the se? lect committee. . * “But in the event of a dis| covery we have been assure ed that Petrocorp will nof: get through the back door,”J One shareholder point® out that if oil was found it -was a long way to the sden Point refinery. “If we find oil it will worth taking to MarsdS Point,” Mr Shepherd “I might even ask for inincrease' in directors feef which haven’t gone up fdf donkeys’ years," he said. ■ u