Oil company suing government over decision to stop issuing new exploration permits

Must Read

Suriname’s Block 58 could hold 6.5 billion barrels of oil – Morgan Stanley

US multinational investment bank and financial services company Morgan Stanley says its modelling of Suriname’s Block 58 shows that...

Oil tanker SKS SPEY will lift Guyana’s 3rd million-barrel oil cargo this weekend

Norwegian flag-carrier SKS SPEY will lift the third million-barrel oil cargo for Guyana this weekend. OilNOW understands the vessel...

Drill campaign for Liza phase 2 development continues

ExxonMobil, operator at the Stabroek Block offshore Guyana, is moving forward with its development drilling operations for phase 2...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

(RNZ) A New Zealand-owned oil and gas company that missed out on an oil exploration permit is suing the government for breach of procedure.

Greymouth Gas Turangi missed out on a permit in last year’s offer, and now wants its bid to be reconsidered.

The company was essentially claiming that Energy Minister Megan Woods’ decision not to award the company an offshore coastal permit last year was not justified.

It is challenging the government’s decision to stop issuing new permits, and the haste with which the 2017 permit was offered to a foreign-based company with what Greymouth claimed had no track record.

Greymouth Gas Turangi chairman Mark Dunphy said New Zealand petroleum companies relied on the Block Offer process to ensure transparency, contestibility, maintain competitiveness and grow their businesses.

He said if the government wanted to change the basis on which petroleum permits were granted, it needed to follow the procedure set out in the Act.

The policy change was abrupt, counterproductive, too soon and would add to current gas shortages and further increase gas and petroleum prices, Mr Dunphy said.

Government officials have warned the move to halt new offshore oil exploration permits could cost the country billions.

Greymouth Gas and Petroleum Companies, established in 2000, were the country’s second-largest petroleum producer in terms of the number of barrels of oil produced daily.

The claim was lodged in the High Court in April, and the company announced the litigation this week to coincide with the introduction of amending legislation to Parliament.

Mr Dunphy said they had not intended to go public, but the company was named in the amendment Bill.

“Our litigation is designed to say, ‘hang on – the Block Offer process was started in March 2017 with an invitation for bids, and then with a government decision made in December 2017 wasn’t a fair go’,” he said.

Late last year Westside New Zealand Limited was granted one 12-year offshore permit in the Taranaki Basin.

Mr Dunphy said a key point was that the decision was made by the newly appointed energy minister.

He said they had been told the bid was compliant and then after the election and the appointment of the new government, something changed.

“We’ve been involved in many bids since we formed the company in 2000, and we understand the process.”

- Advertisement -

Latest News

ExxonMobil to ease shut-ins to 200,000 boe/d in Q3 on recovering demand

(S&P Global Platts ) ExxonMobil aims to ease global oil and gas production shut-ins by about 40% to 200,000...

Saipem in ground-breaking agreement for deep-seabed mining

Fincantieri and Saipem have signed a Memorandum of Understanding (MoU) to promote the development of deep-seabed mining (DSM), i.e. the sustainable exploitation of deep-sea...

Suriname’s Block 58 could hold 6.5 billion barrels of oil – Morgan Stanley

US multinational investment bank and financial services company Morgan Stanley says its modelling of Suriname’s Block 58 shows that it contains a potential 6.5...

Oil tanker SKS SPEY will lift Guyana’s 3rd million-barrel oil cargo this weekend

Norwegian flag-carrier SKS SPEY will lift the third million-barrel oil cargo for Guyana this weekend. OilNOW understands the vessel is in a waiting area...

Drill campaign for Liza phase 2 development continues

ExxonMobil, operator at the Stabroek Block offshore Guyana, is moving forward with its development drilling operations for phase 2 of the Liza project. The Noble...

More Articles Like This