Latest / Early Edition with Ryan Bridge / John Carnegie: Energy Resources Aotearoa CEO on the government lowering the bar for gas companies to access $200m fund

Transcript

John Carnegie: Energy Resources Aotearoa CEO on the government lowering the bar for gas companies to access $200m fund · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Government's lowering the bar for gas companies to get access
• 0:03
  Speaker 1: to that big fund, the two hundred million bucks, the
• 0:06
  Speaker 1: Gas Security Fund. This is meant for new exploration. They're
• 0:09
  Speaker 1: loosening the criteria, opening it up to a wider range
• 0:12
  Speaker 1: of products. Boost down dwindling supply. We know we need
• 0:15
  Speaker 1: more of it. This means, on top of looking and
• 0:17
  Speaker 1: drilling for more gas, ourselves will take applications for anyone
• 0:21
  Speaker 1: who can get us more gas quickly. John Carnegie is
• 0:25
  Speaker 1: the Energy resources out there at our CEO with me
• 0:27
  Speaker 1: this morning.
• 0:28
  Speaker 2: John, Good morning, Yeah, good morning Ryan.
• 0:30
  Speaker 1: How many applications have we had for the current regime
• 0:33
  Speaker 1: do you know? Or how much interest?
• 0:34
  Speaker 2: Not much? Oh, I know, we're already seeing some positive signs.
• 0:39
  Speaker 2: I spent some time last month with international partner groups
• 0:43
  Speaker 2: in Central America and the UK that have members who
• 0:45
  Speaker 2: are actually looking incredibly closely at the whole package of
• 0:49
  Speaker 2: the new regulatory settings for the sector and this change
• 0:54
  Speaker 2: will hopefully spark more interesting and actually we've already had
• 0:58
  Speaker 2: one new permit at the time, and we expect more
• 1:02
  Speaker 2: to come.
• 1:02
  Speaker 1: How many more do you reckon?
• 1:05
  Speaker 2: Well, that's going to be a judgment made by the
• 1:08
  Speaker 2: companies as to whether or not New Zealand's investible and ultimately,
• 1:12
  Speaker 2: companies will only invest if they see stable, durable policy
• 1:16
  Speaker 2: and that's why bipartisan political support for these measures are
• 1:21
  Speaker 2: so crucial.
• 1:22
  Speaker 1: Which we haven't got yet obviously. Is you know Shane
• 1:25
  Speaker 1: Jones has been talking about, is this actually the amount
• 1:28
  Speaker 1: two hundred million is not enough in the fund or
• 1:31
  Speaker 1: is it the criteria? Are we limiting it at too much?
• 1:34
  Speaker 1: And is that why they're having to change this now?
• 1:37
  Speaker 2: No, Look, I think more money is always nice, Ryan,
• 1:41
  Speaker 2: Oil and gas exploration is an expensive business and frankly
• 1:45
  Speaker 2: two hundred million won't go far, especially if it's sliced thinly.
• 1:50
  Speaker 2: But actually, as I've just alluded to, it as much
• 1:53
  Speaker 2: about the overall risk profile of the activity than the
• 1:57
  Speaker 2: money itself, and so it's encouraging the new level of support.
• 2:02
  Speaker 2: But the focus now should be on creating durable, evidence
• 2:05
  Speaker 2: based policy settings to give investors confidence for the future
• 2:10
  Speaker 2: and on helping reduce their cost base.
• 2:13
  Speaker 1: Appreciate your time is wining, John John Carnegie Energy Resources
• 2:15
  Speaker 1: out here at our CEO.
• 2:17
  Speaker 2: For more from earlier edition with Ryan Bridge.
• 2:19
  Speaker 1: Listen live to news talks at b from five am
• 2:22
  Speaker 1: weekdays or follow the podcast on iHeartRadio,