An oil company will drill an exploratory well on Stewart Island as early as next week.
Greymouth Petroleum has been granted consent by Southland District Council and Environment Southland to drill a well on private land on Horseshoe Bay Road to carry out petroleum exploration.
The consent, issued yesterday, is for four months.
Council senior resource management planner Jennifer Green says the approval is for exploration only and any further testing of the well or further drilling of wells will be subject to another resource consent application.
She told NZ Newswire Greymouth Petroleum would begin drilling next week.
Greymouth Petroleum holds six exploration permits in the Taranaki Basin and one on the Great South Basin. It has rights to produce gas and oil from eight onshore Taranaki mining permits.
It will be the first time petroleum exploration is carried out on Stewart Island, Ms Green says.
Activities at the well include 24-hour drilling operations, temporary buildings and structures, and minor earthworks relating to site construction.
The consent has been granted with 13 conditions, including that the site be restored to its original state and that only essential drilling activities be carried out.
NZN