Climate change activists want Maari oil field sale halted
A Taranaki climate change activist group is urging the Government to stop the sale of the Maari oil field to a Malaysian company in part to avoid the risk of taxpayers lumping the clean-up bill if the company walks away. In a letter to the Minister of Energy and Resources Megan Woods, Climate Justice Taranaki want the transfer of interest and change of ownership from OMV to Jadestone Energy stopped until the Crown Minerals Act was "properly in place." Doing so would ensure all oil companies are made fully liable for the proper decommissioning of any subsea and onshore infrastructure, the group said. The Maari oil field is offshore of South Taranaki. READ MORE: * Drilling companies should need guarantee from banks, New Plymouth mayor says * Industry insider sounds warning over risk of potential Maari oil field sale * Decommissioning of Umuroa FPSO and offshore Tui oil field a massive opportunity for Taranaki firms "We do not support the transfer of any existing oil, gas or coal permits or extension of expiring permits," CJT researcher Catherine Cheung said in the letter. Cheung said there was "hugely unjustifiable risk of such a transfer, mirroring the regrettable economic burden and environmental threats on Aotearoa, resulting from the liquidation of Tamarind Taranaki Ltd, which owned and operated the Tui Field." Tamarind exploited a loophole in the law to enable it to walk away from having to pay to decommission the oil field. The multi-million dollar cost of decommissioning the Tui oil field, offshore of Taranaki, and removal of the Umuroa FPSO (floating production, storage and offloading facility) is estimated at $155m. The bill is to be footed by the Government after ownership of the field transferred to the Ministry of Business, Innovation and Employment when Tamarind Taranaki went into recievership. "We ask that any proposed sales or transfer of ownership and operatorship of oil and gas fields, on and offshore, be blocked at least until the Crown Minerals Act, Exclusive Economic Zone Act and any other required legislation are properly in place, to ensure that companies are fully liable for responsible decommissioning, environmentally and socially." A spokeswoman for Minister Woods said no decision had yet been made on the sale of the oil field. "The applications have been made under the current Crown Minerals Act, and are currently being evaluated by officials," she said. "The evaluation includes a financial capability assessment. "No decisions have yet been made." Meanwhile MBIE has reassured Taranaki oil and gas sector companies that those with decommissioning experience would not be shut out of the tendering process for the upcoming Tui oil field project. In a statement a MBIE spokesperson said the project will shortly be going to the market for a contract to act as the owner's (MBIE) agent for the demobilisation of the FPSO Umuroa. Parties with relevant experience in comparable activities are encouraged to tender for this work, which will cover the demobilisation phase of the project only, he said. MBIE will be asking suppliers to demonstrate how they will deliver the best local outcomes to New Zealand and Taranaki through our tender processes, balanced against the size, risk, and complexity of the procurement, the spokesperson said. "It is likely there will be subsequent tenders offered as the project progresses through the multiple phases of the broader decommissioning work." The nature of the decommissioning of the Tui oil field means that MBIE needs the assistance of specialists with various expertise to provide technical advice to the project, he said.