Issue 33 – November 2011
Petroleum royalties, the government's share of proceeds from oil and gas produced in New Zealand, could be a very significant source of government revenue for many more years.
Independent financial advisers Woodward Partners have assessed the asset value of future petroleum royalties, from known petroleum reserves as well as potential production. If recent patterns of exploration and development continue, future royalty income could generate $8.5 billion to New Zealand. If current exploration rates were to increase by 50% over the next 10 years, New Zealand could earn $12.7 billion in royalties.
Summarised from the Ministry of Economic Development's Business Update, September 2011.