Revenue minister Michael Cullen announced yesterday that rigs working in appraisal or development wells would be included in the “183-day” waiver, as would non-resident seismic ships, until the end of 2009.

“These operators can face problems similar to those of rigs undertaking exploration work,” Cullen said.

He also clarified details surrounding changes to the 183-day rule, saying the changes would not include employees or contractors of rigs, resident drilling rig operators, onshore drilling rig operators or supply and support vessels that service the rigs while in New Zealand and, in some cases, bring the rigs to New Zealand.

The changes now means non-resident offshore rig operators and non-resident operators of seismic survey ships will be exempt from paying company tax on their profits in New Zealand from June 30 this year for 5½ years. These changes will be included in a taxation bill to be introduced in November.

While the Petroleum Exploration Association of New Zealand said it was pleased all drilling and seismic activity would be included in the package of measures designed to boost gas exploration, it still believed supply-support ships should be exempt.

“We are somewhat bemused by the exclusion of supply vessels as they are an integral and vital part of any offshore drilling operation,” Peanz executive officer Mike Patrick told EnergyReview.Net from Wellington today.

“We will continue to push for their inclusion in all drilling programs and will have an opportunity to present our case when submissions are called on the bill at the select committee stage.”

Cullen, however, has said he considers it difficult to see why supply vessels should be exempt as they would be liable to New Zealand tax when entering ports, as are other vessels.