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Australian oil and gas company Beach Energy has applied to lift restrictions to begin drilling on two new wells in Taranaki.
An oil and gas company has applied to drill two new wells in the Taranaki Basin starting in 2023, at an estimated cost of $168 million.
Beach Energy, an Australian company that operates the Kupe field 30 km offshore south of the Taranaki coast, claimed the new facility could increase Taranaki’s regional GDP by $20 million.
The Adelaide-based company has applied to have restrictions on the discharge of harmful substances lifted by the Environmental Protection Authority and its case has been heard by an independent panel at the Novotel Hotel in New Plymouth.
On Tuesday, the board members appointed by the Ministry of the Environment heard the witness statements presented by Beach Energy.
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Fraser Colegrave, an economic consultant for Beach Energy, said drilling the two new wells would cost about $168 million.
“Additional production will support a just transition away from fossil fuels and provide new employment opportunities for those currently working in the oil and gas sector.
“I estimate that the regional impact of the proposed two-well drilling campaign could be equivalent to an increase in GDP of up to $20.9 million, employing 164 full-time people, for one or two years,” Colegrave said.
The predicted increase in GDP, he said, would fall back entirely on the Taranaki region, which is heavily dependent on the oil and gas industry.
The Kupe field currently has three wells extracting gas south of Manaia and the two additional wells would potentially impact an area of nearly a square kilometer.
The drilling project is likely to alter the ecosystem in the area and release harmful substances to the sea through deck drainage, typically by depositing drill cuttings on the seafloor, according to the application filed by Beach Energy.
The 3370 meter deep wells will also disturb the seabed and cause vibrations and explosions.
However, James Winchester, attorney for Beach Energy, said the company was seeking a compromise between environmental and economic needs and that there would be no property damage from the release of harmful substances.
The “rather large oil rig” will be visible from shore and the discharge would be treated and managed on site.
STORIES ONE DAY
A short documentary about an ongoing environmental disaster in Aotearoa’s backyard: the expansion of oil and natural gas operations in Taranaki. Directed by: Ethan Alderson-Hughes. (Video first published September 19, 2021)
John Kidd, an evidence consultant for Beach Energy, said domestic gas production was currently insufficient.
Domestic demand per year was 190,000 tons of liquefied gas and 100,000 tons were produced by the Kupe field, while the remaining 90,000 tons were mainly imported from Australia, he said.
During the application phase, local iwi and hāpu of the area expressed concern about the mauri or life force.
Ngāti Ruanui, Ngāruahine and Ngā Manuhiakai stated that the drilling will significantly degrade water quality and have a negative cultural impact on Māori Tikanga.
Helen McConnell, a marine mammal consultant for Beach Energy, said the noise created by the rig could drive away whales and create the risk of collision with, entanglement and entrapment in the rig.
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