Ref: OIA21-198
Richard Woodd,
[FYI request #16298 email] Dear Mr Woodd,
I refer to your email of 5 August 2021 requesting the following information under the Official
Information Act:
“AWE was the Tui field operator from 2005 to 2017, during which time it yielded $539 million
in Crown royalties.
Was this company required by either its permit or the Crown Minerals Act to hold funds for
the field decommissioning at some future time?
Was this requirement legally enforceable or not by the permit authority and please explain
why?
If so, did the company actually hold funds and how much?
What happened to those funds when the field was sold to Tamarind?”
Petroleum Mining Permit 38158 (PMP 38158), covering the Tui Field, was granted in November 2005
to the following permit holders:
New Zealand Overseas Petroleum Limited
AWE New Zealand Pty Limited
Stewart Petroleum Company Limited
Mitsui E&P New Zealand Limited, and
WM Petroleum Limited.
At the time that PMP 38158 was granted there was no requirement, under the Crown Minerals Act
1991 (the Act) or any regulations under that Act, for permit holders to set aside funds for the purposes
of decommissioning at some future point in time.
In the intervening period, changes have been made, and more are planned, to mitigate the risk of
permit and licence holders failing to carry out and fund decommissioning. The 2019 reforms
introduced a requirement to obtain the prior consent of the Minister of Energy and Resources to
changes of control of petroleum and minerals Tier 1 permit operators. There was no such requirement
when Tamarind assumed control of the Tui Field in 2017.
On 23 June 2021, the Crown Minerals (Decommissioning and Other Matters) Amendment Bill (the
Bill) was introduced in Parliament
(https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-
laws/). The Bill proposes changes to strengthen the regulation for petroleum infrastructure
decommissioning under the Act. These proposals apply to all current and future petroleum permit
and licence holders. The Cabinet papers related to this Bill have been proactively released and are
available for viewing on the
Ministry of Business, Innovation and Employment website: .
I trust you find this information helpful, however, you have the right to seek an investigation and review
by the Ombudsman of my response to your request, in accordance with section 28(3) of the Official
Information Act 1982. The relevant details can be found at:
www.ombudsman.parliament.nz. Warm regards
Hon Dr Megan Woods
Minister of Energy and Resources
