Oil explorer reacts to protests

Brazilian oil giant Petrobras says protest action off the East Cape could prompt it to withdraw early from its contractual obligations, as opponents liken the military presence there to the situation in Libya.

The navy's inshore patrol vessel Pukaki and air force aircraft, including an Orion, have been working with police to monitor the protest.

A survey ship, the Orient Explorer, is doing the first seismic study of the Raukumara Basin area off the East Coast since state-controlled Petrobras was awarded a US$118 million (NZ$151m) five-year permit last June.

Surveying was disrupted on Sunday when Greenpeace protesters swam in front of the Orient Explorer and its support ship, the Orient Pioneer.

Yesterday, police issued maritime notices requiring the Greenpeace flotilla to remain at least 200 metres from the two ships. They face a fine of $10,000 or up to 12 months' jail for breaching the notice. The protesters were abiding by the 200m limit last night but will decide today, after receiving legal advice, whether to stick to it.

"We will continue to protest and oppose deepsea oil drilling in whatever way we agree is appropriate," Greenpeace spokesman Steve Abel said. "We remain determined and resolute to make sure the deepsea drilling doesn't happen in New Zealand waters."

The protesters had been surprised by the Government's involvement in the situation. "We're very concerned about the way that that has played out and we also feel it's an extreme action to bring in the New Zealand military."

Waiariki MP Te Ururoa Flavell said calling in the navy to deal with the protest smacked of Libyan tactics.

"What should have happened before the permit was given to Petrobras was proper consultation including at the marae along the coast of Te Whanau A Apanui and Ngati Porou – the two iwi who belong to the waters that the Government has allowed to be exploited."

The Petrobras head of New Zealand operations, Marco Toledo, said his company had two "decision gates" where it could pull out of the contract. The first was in August 2012 and the second January 2014.

The first seismic survey is worth US$5 million, the second will cost US$7m, and if a well is drilled it will cost US$106m.

Mr Toledo said about half of the projects similar to the Raukumara Basin went ahead. Asked if the protest would affect Petrobras' decision when looking at whether to pull out early, he said it could. "We have to understand how the institution works."

The company had never experienced such opposition before.

"Petrobras is always very welcome where the company goes. While it's in the main in Brazil, Petrobras is in more than 28 countries worldwide."

He said it would be some time before possible drilling began and he hoped there would be better relations with iwi before then.

Local iwi Whanau a Apanui were backing the Greenpeace-led protest. Maori Party co-leader Tariana Turia said her party was opposed to the navy or police being used in the matter and was in total support of the iwi. "These are matters that should have been discussed fully. We should never have got to this point."

Independent MP Hone Harawira said this was a historical event in line with Parihaka, Bastion Point and Tuhoe's situation. "It's the Crown moving against Maori for daring to defend their rights .. ."

Prime Minister John Key said the Cabinet had sought official legal advice on the police jurisdiction within the exclusive economic zone. Police did have powers and that information had been passed on to the commissioner.