Auckland: New Zealand First has announced plans to invest NZ$1 billion in the exploration of potential offshore oil and natural gas reserves if the party is elected to government in the next general election.
Launching the party’s election campaign in Auckland on Sunday, New Zealand First leader Winston Peters said the proposal was aimed at reducing the country’s reliance on international oil and gas supplies. He also announced plans for a nationwide National Subsurface Development Survey to assess New Zealand’s offshore energy potential.
Addressing more than 400 delegates and hundreds of supporters, Peters said New Zealand could no longer afford to remain dependent on overseas energy sources.
“It is my belief that the initial surveying process will take around two years, and within six years New Zealand could have a pathway to developing its own oil and gas supply,” he said.
Peters claimed New Zealand has 10 offshore basins with world-class potential, many of which have never been comprehensively surveyed using modern technology. According to him, the data gathered through the proposed survey would also support the development of geothermal energy projects and carbon storage initiatives.
He said the party would introduce a royalty system under which the government would receive more than 50 percent of revenues from mature energy production projects. Peters added that the revenue could help establish a Norwegian-style Sovereign Wealth Fund, using the country’s natural resources to strengthen economic growth and energy security.
The New Zealand First leader argued that the policy would help address future gas shortages while boosting national prosperity and reducing dependence on international markets.
Peters also ruled out working with the Labour Party after the next election, criticising Labour’s economic and social policies and saying New Zealand First would prioritise national interests, economic sovereignty and energy security.
Meanwhile, the National Party criticised the announcement. National’s Energy spokesperson Simeon Brown said Peters and New Zealand First had previously supported the ban on new offshore oil and gas exploration while serving in the Labour-led government. Brown argued that the new proposal was an attempt to reverse the consequences of a policy New Zealand First had helped introduce.
