Stronger rules as renewables take over

The Government is preventing taxpayers picking up the bill for the decommissioning of oil fields in the transition away from fossil fuels, says energy and resource minister Dr Megan Woods.

“After the Crown had to take responsibility for decommissioning the Tui oil field, it became clear to me that the current requirements around decommissioning are inadequate and we need to prevent taxpayers carrying the can again,” she says.

The decommissioning of petroleum fields is expected to increase amid the global move to renewable energy helping drive the switch to e-mobility.

“Decommissioning fields is an issue governments are grappling with the world over as we transition away from fossil fuels,” Woods says.

“As New Zealand’s oil and gas fields approach the end of their productive lives it is imperative to have a regime that is up to the job.”

New proposals in a Bill introduced to Parliament will impose an explicit statutory obligation on petroleum permit and licence holders to carry out and fund decommissioning of petroleum fields.

Woods says the Bill, likely to be passed later this year, will ensure those who have enjoyed the benefits of a permit can’t avoid the responsibility of cleaning up after themselves.

“This Bill takes a long-term view and requires petroleum permit and licence holders to make payments towards any future remediation that may be needed to wells and any infrastructure left in place, after decommissioning has been completed.”