D'Urville oil prospector faces opposition

A Nelson-based environmental group is taking on a multimillion-dollar oil exploration company wanting to explore for oil southwest of D'Urville Island, arguing a blowout in that area could devastate the sensitive marine area.

Friends of Nelson Haven and Tasman Bay has appealed a Marlborough District Council decision last year to grant resource consents to oil company Australian Worldwide Exploration (AWE) to undertake the exploratory work using a purpose-built semi-submersible rig vessel.

Both groups met yesterday in Nelson to discuss the decision.

Friends group spokeswoman Gwen Struik said the decision could set a precedent for further expansion of oil exploration within the Coastal Marine Area, and therefore could impact on other sensitive coastal areas elsewhere in the top of the South Island and New Zealand.AWE has five major oil and gas projects in Australia and New Zealand, and operates the Tui offshore project in the Taranaki Basin. The company carried out its initial seismic search for oil in the D'Urville area in August 2008, and the next stage of exploration is expected to take 25 to 30 days.

Dr Struik said oil exploration had a higher probability of accident compared with oil extraction. She said the rates of an accident varied from one in 200 to one in 3500 if a blowout occurred, and depending on how quickly mitigation measures were put in place, it could impact on D'Urville, French Pass, Croisilles Harbour and possibly Admiralty Bay.

"There are just certain things you don't take risks about."

Dr Struik said the oil industry was a multibillion-dollar industry and arguments in favour of the drilling would be made in economic terms, but even if there was economic gain for the region it would only be short-term. "The bay is forever."

The Friends group had money for legal action, but was looking for donations to enable it to bring in witnesses and experts from overseas, she said. "It's the difference between having a strong case. We are going up against a billion-dollar industry."

In his written decision last year, commissioner Ron Crosby said "on narrow balance" he had decided on granting the seven consents to AWE, with strict conditions.

Mr Crosby said a blowout could be devastating to the coastline and coastal waters and ecology, but he was satisfied that measures to control a possible accidental discharge would be in place.

If a commercial hydrocarbon find occurred, depending on its size and accessibility, there would potentially be significant royalty and tax payments to the Government. Significant capital expenditure would also be involved in setting up the well.

A top of the south iwi, Ngati Koata, has also filed a late appeal against the decision. The iwi appealed on the grounds that a drill site within 10.5 nautical miles of D'Urville Island included a collective of rocks and islets and guardian islands which were sacred reserves and fishing reserves for the iwi.

AWE's New Zealand manager, Dennis Washer, said the company recognised there was quite an education process with respect to the oil and gas industry going into new areas of interest.

- © Fairfax NZ News

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