KEY POINTS:
As Southland braces for the possibility of a multi-billion-dollar industry, the region's promoters know exactly what their initial role is.
"If you're an Austrian or Thai company, and you're coming to the south of New Zealand where there are 94,000 people, a lot of people might imagine we
run around in grass skirts," says Steve Canny, enterprise and strategic projects group manager, Venture Southland.
"We're trying to demonstrate that, no, we don't run around in grass skirts; we have quite significant capability. We've historically delivered major projects including hydro, aluminium smelters, major dairying.
"We want to say, 'Come and have a chat and see what we can do'."
Venture Southland, a joint initiative of the region's district councils to promote business, tourism and community projects, has formed an energy consortium of more than 170 companies standing by for a Great South Basin oil boom.
Canny says the companies have been put through training programmes to make them aware of what the oil industry needs and expects. The consortium has been talking to the exploration permit holders and international contractors to make them aware of what Southland has to offer.
The companies in the consortium cover a wide range: ports, engineers, offshore support, marine radio communications, sandblasting, rigging, health and safety experts and the hospitality industry.
While there has been a flurry of permit holders and their contractors visiting Invercargill since the Government announced the successful bids, Canny says it's a bit too soon for anyone to have set up a base in the deep south.
With seismic work expected to start late next month, there will be some work for locals.
"During seismic work, typically vessels remain at sea for long periods of time and crew change-outs occur by helicopter. They tend not to have too much land impact during this time but we'll primarily focus around accommodation for crew, food and logistics, helicopter support and vessel supplies."
If companies move to the drilling phase, they will require more shore-based support and specialist skills. The big paydirt for Southland would come if someone strikes oil or gas.
Canny is loath to estimate what economic impact that could have on the region, saying there are too many variables.
"It depends if you find oil or gas. If you do find gas do you bring it onshore to process it? Is there one hole or three holes? We've got too many figures; it could be this, it could be that."
And, besides, he says: "It's not called exploration for nothing. It's purely that at this stage."
If Taranaki is a guide, though, Southland's affluence will soar if oil or gas is discovered - especially given that the Government believes the Great South Basin has 10 times the potential of the Maui field.
In an economic impact report for Port Taranaki, consultants Business and Economic Research found the oil and gas industry last year directly contributed $733 million to the region's GDP - almost 20 per cent - and employed 770 people. Adding in the indirect impact of the industry, the report found it was worth more than $1.41 billion to the region's GDP. Almost 70 per cent of the port's work was oil and gas-related.
Back in Southland, Canny is aware that, while the region has a history with oil and gas (including exploration of the Great South Basin in the 1970s and 1980s), the oil companies may well be thinking about moving in a substantial international workforce if they make a discovery.
"We've heard from some international players indicating they could establish 3500 skilled workers here within a short amount of time," says Canny.
He would prefer that most of those employed were New Zealanders, but knows that Southlanders are bound to start hearing more than a few Scottish brogues and Texan drawls around town.
Just when, and to what extent, the influx begins depends on what happens over the next three years.
