The timetable for offering new onshore exploration acreage appears to be slipping as the Government looks at ways to protect itself from potential legal challenges.
Consultation on the 1703sq km of land potentially available for exploration in Taranaki closed on June 8 and formal tenders for acreage had been expected to be sought this month.
But the formal request for bids now looks set to slip into September at the earliest as the Government ponders options to protect itself from potential legal action. In April the Government shocked the industry by declaring no further offshore exploration acreage would be offered. Onshore exploration would be restricted to Taranaki only and new acreage there was also only guaranteed to be offered for three years.
Energy and Resources Minister Megan Woods last week said the Taranaki offer would proceed. She had received advice on potential changes to the Crown Minerals Act, but she told Parliament she had taken additional advice on whether a "belt and braces" approach was needed to avoid a potential judicial review of the ban on new offshore exploration acreage. "I am seeking some additional advice, but whatever outcome we go with there will be a Block Offer 2018 that will be initiated," she said in response to questions from National MP Jonathan Young.
John Kidd, director of sector research at Woodward Partners, said the block offer has already been initiated. Woods may be trying to defer the formal invitation for bids - another potential trigger for legal action - until the Crown Minerals Act can be amended to conform with the sharply reduced scope of the exploration regime outlined in April.
