19 Mar 2015

Oil and gas worth $2.8 billion - report

5:51 pm on 19 March 2015

New Zealand's oil and gas industry is worth $2.79 billion dollars to the nation's economy, up from $2.5 billion in 2010, a new report says.

The report, called 'The Wealth Beneath Out Feet - The Next Steps' was released at Parliament today.

Published by the regional development agency Venture Taranaki, it updated the findings of a 2010 report that defined the economic contribution of the oil and gas sector in this country for the first time.

Among the report's other major findings was that the wider oil and gas industry now employs 11,720 people, up from 7,700 in 2010.

The report attributed the growth to increased exploration activity involving more companies, a larger supply chain and more downstream users.

On the downside, royalty payments made to the government to June 2014 were about $300 million, down from $432 in 2010, which reflected fluctuating production.