Heatley Phil: Questions for Oral Answer — Questions to Ministers 
Heatley Phil: Questions for Oral Answer — Questions to Ministers 
[Volume:630;Page:2058] 
7.  
PHIL HEATLEY (National—Whangarei) 
 to the  
Associate Minister of Energy 
: When will he announce the bidding result of the Government’s four oil and gas exploration block offers off the East Coast of the North Island and nine block offers in offshore Taranaki that closed on 17 February 2006? 
Hon HARRY DUYNHOVEN (Associate Minister of Energy) 
: 
 I will be pleased to announce the results of the block offers as soon as the assessment process is completed. 
Phil Heatley 
: Will that Minister admit to the House today that he has again failed to secure successful bids for the oil and gas exploration off the East Coast and off the coast of Taranaki—just as earlier this year explorers rejected his three deep-sea Taranaki offers and his three Northland block on offer—and if he does admit that is he at all concerned in light of New Zealand’s urgent need to replace disappearing Maui gas? 
Hon HARRY DUYNHOVEN 
: In the mid-1990s the industry was concerned about the depletion of the Maui Gas field and drew attention to the need to address the issue—without any action from the then National Government. After careful consideration in 2004 the Labour-led Government introduced the following initiatives: firstly adjustments to tax provisions; secondly reductions in royalty rates for new discoveries; thirdly additional funding to promote investment in New Zealand; and finally the Government-funded seismic data that has since been made freely available to support block offers. Those initiatives were designed to encourage and expedite exploration and to yield discoveries that will make a material difference to the security of New Zealand’s gas and oil needs. 
Hon David Carter 
: Why are there no bids? 
Phil Heatley 
: Why no bids? 
Hon HARRY DUYNHOVEN 
: I invite members to wait for the announcement on successful block offers. 
Shane Jones 
: Has the Government’s expenditure led to increased exploration activity? 
Hon HARRY DUYNHOVEN 
: It has certainly. Bidding parties for the East Coast have stated that the timely availability of new data has materially changed perceptions of the potential of the East Coast basin and stimulated their wider interest in New Zealand. 
Phil Heatley 
: Is the Minister concerned that there is no bidding war when it comes to the Northland Taranaki and East Coast block offers but there is just him with a white flag of surrender wallowing around in failure—part of an entire Government that is in failure? 
Hon HARRY DUYNHOVEN 
: I am not sure where the member opposite is getting his information from at all. He certainly cannot have been at the recent oil and gas conference held in Auckland or he would know that the industry is not only very buoyant but we have twice—I repeat twice—the number of wells being drilled in recent years than in any time in which the National Party was Government. I invite those members to wait for the results of the bidders’ offers. 
Hon Trevor Mallard 
: Can the Associate Minister explain to the House that there has also been a hurricane called Katrina in the Gulf of Mexico which has slightly reduced the availability of drilling rigs? 
Hon HARRY DUYNHOVEN 
: The Minister is quite correct. There has been a reduction worldwide in the availability of rig slots. I can tell members just for their information that rigs were previously available prior to Hurricane Katrina for around US$150000 per day. A particular company working in New Zealand had one of its operations managers strongly criticised for agreeing to a contract at $180000 per day but he is now being lauded for agreeing to that contract because drilling rig rates will be around $500000 per day for the next 3 years. [ 
Interruption 
] I tell the member that he needs to do a thorough bit of research into how the industry operates. I have also to say that he is one of the brightest of the current National members of Parliament. 
Phil Heatley 
: In the Minister’s recent speech to that very Petroleum Conference he referred to he said: “Have these initiatives been successful? I think it is too early to tell.” so did he not really mean that all those failures mean it is too late to matter? 
Hon HARRY DUYNHOVEN 
: I am very happy that the member mentioned my speech to which I had a really marvellous reaction. We have received a very positive response from the entire oil and gas exploration industry to the initiatives taken. That is confirmed by companies recently telling the Ministry of Economic Development that the availability of data had very much influenced them to look seriously at New Zealand. We will wait for the results of the block offers. 
Phil Heatley 
: Has the Minister apprised the Prime Minister of all his modest successes in his portfolio as Associate Minister of Energy of his unwavering loyalty and endless years of service and of all those successful bids given that the job of Minister of Energy is now on block offer? 
Hon HARRY DUYNHOVEN 
: Unlike the little member opposite who waves the flag a lot I am sure the Prime Minister is aware of my ability or otherwise in every field of endeavour around here. The member has raised a very good question as to the reaction of industry to the initiatives taken by the Government. I can tell the member that even members of his own party have congratulated me on the initiatives taken. As the member has raised it I seek leave to table my address to the New Zealand Petroleum Conference titled  
New Zealand’s exploration outlook 
. 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? There is objection. 
Hon HARRY DUYNHOVEN 
: I seek leave to table a document from the 1996 New Zealand Petroleum Conference proceedings a very good paper by a Mr C Stone about the shortage of gas etc. in New Zealand. 
Document by leave laid on the Table of the House. 
Phil Heatley 
: I seek leave to table a graph showing Maui’s decline over the next 4 years. 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? There is. 
Phil Heatley 
: I seek leave to table an article titled “Explorers’ begging bowl goes unfilled”. 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? There is. 
Phil Heatley 
: I seek leave to table an article titled “Government drags its feet on oil exploration”. 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? There is. 
Phil Heatley 
: I seek leave to table an article titled “Overseas investors highlight barriers to investment in New Zealand”. None of these articles were written by Harry Duynhoven. 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? There is.