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Tax Exemption For Oil And Gas Exploration To Continue, Govt Says

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, May 13 NZPA - The May 28 budget will provide for a five-year continuation of the tax exemption for offshore oil and gas exploration, the Government said today.

The exemption from tax on the profits of non-resident operators of offshore rigs and seismic vessels was introduced in 2004 and was due to expire on December 31, 2009.

"The international exploration industry is showing increasing interest in New Zealand following recent government initiatives," Revenue Minister Peter Dunne and Energy Minister Gerry Brownlee said in a joint statement.

"The past five years have seen more exploration activity in New Zealand waters.

"The number of non-resident offshore rigs has more than doubled, the number of offshore wells drilled has increased from 12 wells in the period between 2000 to 2005 to 62 wells in the period since 2006."

The ministers said New Zealand was distant from other countries with petroleum programmes and the cost of sending rigs and seismic vessels was high.

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