A major potential gas discovery off the South Island’s east coast has been indicated by the New Zealand Oil and Gas (NZOG).
The company has reportedly commissioned an independent study to understand the economic impact of the commercial discovery in the Barque field, which is around 80 kilometers east of Oamaru town in New Zealand. The Barque Field Development Economic Impact Assessment report highlighted earning billions of dollars worth of local and export earnings, thousands of jobs, and environmental gains.
Andrew Jeffries, Chief Executive of the company said that they were not in a position to commit to the drilling of an exploration well yet, and in the case they did, the chances of finding gas were one in five. He reiterated at the company’s annual meeting that it would be a game-changer to have the commercial discovery, both for the company and the country.
Jeffries pointed to the wider, national benefits. The generation of 32 billion NZ dollars (22 billion U.S. dollars) in taxes and royalties by a commercial Barque discovery was indicated along with billions of dollars in GDP and export revenues. Also, included are environmental goals like replacing of coal with a cleaner, low carbon emitting energy source.
Meanwhile, Cameron Madgwick, PEPANZ Chief Executive said in a statement that the construction could create about 5,700 jobs per year and add 7.1 billion NZ dollars to New Zealand’s GDP. He added that there were other four drillable South Island prospects and the economic returns would potentially be even greater, which demonstrates the immense potential of the New Zealand industry.