Offshore oil news from Govt today

An announcement is due from the Government today on new oil exploration permits off East Cape.

Applications for exploration rights to the Raukumara Basin have been under consideration since the beginning of the year. The 25,000 square kilometre area has been identified by Crown Minerals as having potential large reservoirs of oil and gas.

Minister of Energy Gerry Brownlee is to reveal this afternoon which company has been awarded the exploration permit for the region. Orient Petroleum, East Coast Energy Ventures, and Rawson Taranaki have all recently lodged applications for exploration permits in the East Cape area.

Meanwhile, the Prime Minister is promising steps are being taken to ensure offshore oil drilling in this country is safe. The spotlight is on the industry because of BP's leaking well in the Gulf of Mexico which has caused the largest recorded oil spill in US history.

John Key says the Government is aware of what is going on overseas and it does recognise there is a need for good environmental standards for offshore drilling. He says Environment Minister Nick Smith has been considering the matter and is due to outline plans in the very near future.

- NEWSTALK ZB