(Adds Brownlee quotes)

Wellington, Nov 18 NZPA - Export earnings from New Zealand's petroleum sector could increase tenfold by 2025, Energy and Resources Minister Gerry Brownlee told industry representatives today.

Speaking at the Biennial NZ Oil and Gas Outlook 2009 conference in Wellington, Mr Brownlee announced the Government's plans for "unlocking and maximising" New Zealand's petroleum potential, specifically on offshore deepwater basins. "New Zealand's largely unexplored petroleum resource could be one of the country's most significant economic opportunities," he said.

The Government wants to ensure New Zealand is an attractive global destination for petroleum exploration and production investment, he said. "The industry has been neglected by the successive governments for far too long and when you see the potential there, it's sort of a little bit of a surprise."

"Regardless of climate change, the world is not moving away from motor car use any time soon and making the most of the reserves here is pretty important."

Mr Brownlee said the petroleum sector accounted for about $3 billion per annum of New Zealand's export revenue .

In the 2008/2009 fiscal year, oil exports value was $2.8 billion, the largest export earner behind dairy products and meat.

"Should the estimated resources in our unexplored basins be developed, this could increase to $30 billion per annum in export revenue by 2025."

"As we do grow, not only do we have export substitution, but also less dependence on importing oil as well."

Crown receipts alone could increase to more than $10 billion per annum over the next 40 years, he said.

"The immediate focus must be on increasing exploration activity and improving the knowledge of our petroleum basins. The Government must be seen as pro-development of petroleum resources to attract major investments of global capital to support exploration activity."

Mr Brownlee released for feedback today a proposed action plan setting out a series of additional actions the Government would implement to assist the development of the petroleum sector.

"It has a number of elements to it including explicit government encouragement for the sector, a review of the crown's capability to manage our petroleum estate, adjustments to our royalties regime and legislative amendments to the Crown Minerals Act."

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