A government-commissioned review under the Aberdeen University Petroleum Economics Consultants (AUPEC) report on the petroleum tax regime has underlined the need to make more efforts for propelling oil and gas development in the country.

The AUPEC report said, "Consideration of special fiscal measures for non-associated gas (i. e., where oil is not also present) is recommended, in order to minimize the number of marginal gas developments that are economic before tax but fail to be developed because they would uneconomic after tax."

Oil contributes a significant amount in government’s kitty and it can generate $30 billion in export revenues by 2025.

However, much would depend on the positive side of government’s action plan to woo global oil companies.

Government has been urged to refrain from hiking gas royalties. Meanwhile, Energy Minister Gerry Brownlee has come up with an elaborated plan this morning enlisting eight areas of focus to deliver "a step change in New Zealand's economic performance".

The minister proposes more royalties and taxes for the Crown to make handsome revenue from the petroleum estate.