Category Archives: Offshore

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As part of our recent trust companies survey, we asked the participating trust companies what risk and compliance issues pose the greatest challenges to their business.

Reputational risk as a business challenge

As we reported in our previous publication on the results of the survey, the respondents identified beneficiary disputes as the least pressing issue. Reputational risk for clients being associated with structures or offshore jurisdictions was identified as the second least challenging issue (out of a list of seven), behind other matters such as (listed in alphabetical order, so as to continue not to give anything away) Anti-Money Laundering (AML), Cybersecurity, Data protection, Regulatory compliance and Tax compliance.

Although it is impossible to identify a single explanation for this result, the following observations may go some way in explaining why trust companies identified the reputational risk for client being associated with offshore structures as a relatively low priority issue:

The English High Court commented in a decision in April 2020: The use of complex offshore corporate structures or trusts is not, without more, a ground for believing that they have been set up, or are being used, for wrongful purposes, such as money laundering. There are lawful reasons privacy, security, tax mitigation why very wealthy people invest their capital in complex offshore corporate structures or trusts.

Future changes

In recent years, the OECD and a number of jurisdictions have become particularly focused on increasing transparency of offshore investing, and are in the process of introducing more laws that may significantly increase regulatory scrutiny. These often include new reporting regimes and registers that record the names of ultimate beneficial owners, which may have a significant effect on potential reputational risks if anonymity is a major concern.

Enhanced transparency regimes and increasing disclosures of offshore holdings might have the effect of pushing reputational risk further up the risk scale for trust companies in future years, in jurisdictions where offshore investments are perceived negatively.

However, it is perhaps more likely that increasing transparency will demystify the offshore world, thereby having quite the opposite effect. Trustees report that the majority of their clients (and particularly the next generation) are accepting of transparency and information exchange as features of the modern world and, increasingly, clients wish to align themselves with jurisdictions that have internationally recognised regulatory frameworks, sophisticated court systems and advisory networks as well as reputable fiduciary and corporate service providers.

This is the flight to quality that Lydia Essa reports to be more noticeable now than ever. Clients are, in her experience, generally attracted to those offshore jurisdictions which have a global reputation for quality, security, and meet international standards on transparency, and information exchange, even if that comes at a slightly higher cost. Whether these enhanced regimes will assist in reshaping public opinion in time and reducing (or perhaps even eliminating) the reputational risk of an association with the offshore world is yet to be seen but early signs are that certain jurisdictions may be well placed to thrive in these conditions, whilst others may well find the going a lot tougher. Only time will tell.

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Trust Survey - reputational risk for clients being associated with structures in offshore jurisdictions - Lexology

Withassets installed far from shore in harsh conditions, offshore wind turbine manufacturers and project operators areturning to new digital tools to optimize performance, boost power productionand minimize downtime. One such tool is the use of digital copies, or twins, of physical turbines to assist with real-time monitoring of offshore wind projects.

The California Energy Commissions Electric Program Investment Charge (EPIC), a ratepayer-funded energy innovation research and development program, recently awarded a $2 million grant toNorwegian engineering company Aker Solutions and Cognite, an Oslo-based industrial software company, to develop a digital twin model of the physical floating offshore wind turbines that could be deployed along Californias coastline by the mid-2020s.

Aker Solutions hasworked on digital twinsfor many industries power, utilities, shipping, oil and gas, and manufacturing but the new research project is its first for floating offshore wind turbines, Hans Petter vrevik, head of offshore wind projects and business development for the U.S., said in an interview.

The $2 million grant was awarded under an EPIC program intended to advance next-generation wind energy technologies and accelerate the maturation of the Golden States promising but embryonicoffshore wind market.

Aker Solutions and Cognites NextWind Real Time Condition Monitoring platform will take representational data from typical equipment that would be used in a floating offshore wind farm to develop a blueprint for a real-world project. The aim is to generate data and insights that enableimprovements in power production, operations and maintenance (O&M) costs, and environmental performance throughout the operational life of a project.

The real-world project cited as a potential case study by vrevik is the 100- to 150-megawatt floating offshore wind farm proposed by the Redwood Coast Energy Authority and a consortium of private companies, including Aker Solutions, for waters located more than 20 miles off the coast of the city of Eureka in Northern California.

Shashi Barla, principal analyst for the global wind supply chain and technology at Wood Mackenzie Power & Renewables, noted that one of the consortium partnersfor the Redwood Coast Offshore Wind project is EDP Renewables one of the world's largest wind asset owners/developers. That "implies some serious interest in the technology," Barla said.

GE Renewable Energy claims to have developed the first digital wind farm in 2015 and is adding digital twin functionality to the companys Predix software platform. GE is building an app using digital twin technology that will allow engineers to make better decisions about when to run its offshore turbines at full power out at sea.

Prior to construction, digital twins allowplanners to do modeling to analyze and predict O&M costs for a project. But, according to vrevik, the real value outtake of this, in terms of reduced O&M costs, will come when you actually put your projects in the water, and you basically start to collect the data and process it.

At that point, operators will be able to use the digital twin to compare the idealized, engineered condition of the equipment to the actual condition of the real-world project. Real-time monitoring through sensors embedded in the equipment should help wind farm owners avoid costlyunplanned maintenance or repairs.

"You can constantly adjust and optimize how you operate and how you maintain the asset,"vrevik told GTM.

Work on the EPIC-backed digital twin research project is expected to begin in May or June this year, with completion set for early 2023.

vrevik saidAker Solutions and its partners see the Redwood Coast Offshore Wind Project as an ideal first offshore wind project for California, both in terms of size and the fact that it's in an area where there [are few]conflicts and there's a strong wish to see it happen from the local community.

The federal Bureau of Ocean Energy Management may hold an auction for offshore wind lease areas in California by the end of 2020.

While not a new concept, digital twins are playing a growing role in the wind industry,WoodMac's Barla said.

Leading turbine [manufacturers]already have digital twins of their installed fleet that will help optimize the turbine performance and lower the O&M costs over the life of the asset, predominantly on the predictive maintenance of the components, he wrote in an email.

The digital models help in determining the impact on the physical turbines. The virtual sensors enable monitoring of the health of the turbines like temperature check, vibrationsand any aberration in parameters compared to normal performance."

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Using Digital Twins to Boost Production, Cut Costs at Floating Offshore Wind Farms - Greentech Media News

The company received the recognition for its patented Liquid In-Tank Inspection.

(Courtesy Rocsole)

Offshore staff

KUOPIO, Finland Rocsole claims to be the first Finnish company awarded OTCs Spotlight on New Technology Award.

The company received the recognition for its patented Liquid In-Tank Inspection (LITI) development.

Previously, the offshore market had not applied tomographic imaging to any great extent for scanning vessels for water, oil, emulsion, or gas layers.

Rocsole says with the LTI, it is possible to provide full profiles of vessels with no radiation, which brings advantages in terms of safety and the environment.

The system is also said to deliver reliable data on tanks and separators even in harsh or challenging conditions, assisting production optimization.

The LITI Tank Profiler works just as well as any nucleonic devices, but without the typical cost and risks associated with the use of nucleonic devices, said Rocsoles Arto Voutilainen.

In addition, we provide continuous real-time data meaning that we can provide AI-powered predictive analytics for these sub-processes with our capabilities.

Main features of the technology are said to include:

The services are typically offered as a SaaS (Software-as-a-Service) model.

05/05/2020

Link:

Liquid inspection method brings safety benefits offshore - Offshore Oil and Gas Magazine

]]> An oil drilling rig in the North Sea. Credit: Erik Christensen.

While much of the oil and gas industry begins to focus its efforts on decommissioning, and transitioning to a world where oil production, if not oil usage, will form a smaller part of the global energy mix, there are a few companies continuing to invest in and extend the lives of their projects.

Equinors Statfjord field is perhaps the most obvious example, with the company recently announcing that the Statfjord A platform will continue to produce oil into 2027, close to its 50thyear of active operation. The field is estimated to have generated $180bn in income over its lengthy lifespan, and with the drilling of 100 new wells planned, the operators seem to be confident that despite the general trend of the industry, profit and productivity remain in the field.

But its not just majors who are engaging in asset life extension, with this optimistic approach trickling down to smaller players in the North Sea. One such company is Rockrose Energy, a UK-based independent that announced earlier this year that production at its Ross and Blake fields in the North Sea will be extended by five years, pushing the fields expected lifespans into 2029.

With the operators expanding the fields potential production by more than two million barrels of oil equivalent, the project is an identical case study in optimism and a focus on the bottom line to Equinors expansion, but on a more local scale. Yet it remains to be seen if Rockroses project will prove financially viable in the long-term, and how the expansion work will fit into an industry that, despite a few examples, seems committed to decommissioning.

Decommissioning is becoming an increasingly vital aspect of the North Sea oil and gas industry. Oil and Gas UK reported at the end of 2019 that the UK offshore sector is expected to spend over $19bn on decommissioning over the next decade, with well decommissioning in particular accounting for 45% of the forecast expenditure for oil and gas companies over the next ten years.

Yet Rockrose is undeterred, with managing director Peter Mann noting that it is part of the companys strategy to extend field life and push back decommissioning. Plans at Ross and Blake are in line with that.

The firm plans to invest $250m into the two fields, in which it owns a 30.8% stake, to fund new drilling work that will see two additional infill wells constructed

This optimistic investment follows a productive few years for the companythat has encouraged Rockrose to take a more proactive, expansionist approach to its assets, at a time where much of the industry is looking towards decommissioning. Rockrose has seen productivity increase at its operations in recent years, posting an increase in annual production across all of its operations across the North Sea of 117% in 2019 compared to 2018 figures.Furthermore,with over 100 million barrels of oil equivalent beneath its platforms in the UK Continental Shelf (UKCS) alone, the firm is optimistic that its projects will continue to be productive and profitable.

Mann was also eager to point out Rockroses recent commitment to proactive asset acquisition and ensuring high standards of occupational health and safety, both of which could help stabilise the company and its assets in an industry whose future is increasingly uncertain, creating a coherent identity for the firm to unite its operations across its assets.

Rockrose has established HSE policies in place, which ensure the safety and wellbeing of its employees and contractors, he said. This was reflected at Brae, where in 2019 the total number of HSE incidents fell by 39% to 17, with only seven of these taking place post-completion of the acquisition of the Marathon UK deal, which included the Brae assets.

As a result, Rockrose has aimed to position itself as an active and dynamic actor in a sector often considered backward-looking and resistant to change; last July, for instance, the company completed the $95m acquisition of Marathon Oil, a deal which saw assets worth 28 million barrels of oil equivalent come under the operation of Rockrose, significantly expanding the companys influence in the North Sea.

Rockroses approach appears to have yielded financial dividends, at least in the short term, with dramatic improvements in raw production figures and profits over the last year. The company saw a 311% increase in gas production from 2018 to 2019, alongside a 55% increase in oil production over the same period, and a total increase in revenues of 64% across its oil and gas operations.

In the companys annual report, executive chairman Andrew Austin echoed this sentiment, predicting a 9% increase in production between 2019 and 2020 that would see the firms total output reach around 21,000 barrels of oil equivalent per day

Yet while these figures are undoubtedly impressive, they are undermined by the companys vast capital expenditure, which has been enough to keep the company producing in the short term, yet it is unclear as to the sustainability of this level of investment; between 2018 and 2019, capital expenditure increased by a dramatic 624% to $76.9m. Perhaps most concerning, however, is the 292% increase in abandonment expenditure, with RockRose spending over $9m on abandonment work in 2019, despite its broad aims to delay decommissioning work where possible.

In 2017, Rockrose commissioned oil and gas evaluation firm ERC Equipoise to assess the companys long-term financial viability, and the companys conclusions could be a concern for Rockrose. ERC Equipoise predicted that cost inflation would increase from 1.02% in 2018 to 1.4% in 2034, which could drive up operational expenses for a company that has already invested a significant sum across its operations.

Yet according to Mann, this ever-increasing spend is simply part of a changing oil and gas landscape in the UK.

The UK North Sea continues to represent a significant opportunity, said Mann. There is a changing of the guard in the UKCS, with some of the larger international companies refocusing elsewhere, which leaves opportunities for smaller, flexible and ambitious companies with strong balance sheets, like Rockrose, to take on the assets and maximise their economic recovery and potential.

Should the oil and gas landscape shift away from major companies with decades-old projects, towards these smaller, more agile firms with fewer assets, Rockroses vision of smaller projects with significant financial margins could be realised. Despite investment of $248m into the Ross and Blake fields as part of the latest round of expansion alone, the firm still posted an end-of-year balance of $203m at the end of 2019, compared to $38m at the end of 2018.

Financial risks certainly remain for those eager to pursue asset expansion at this point in time, but Rockrose is proving that there could be a way forward for independent companies willing to take these kindsof financial risks.

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Asset life extension: viable in the long term for oil and gas? - Offshore Technology

BusinessSuspected coronavirus cases across the UKs offshore oil and gas industry have fallen, according to new passenger movement figures.

Tuesday, 5th May 2020, 4:40 pm

Step Change in Safety and OGUK have compiled data tracking the numbers of workers travelling back from offshore, with four different categories of transport depending on their health status.

The latest dataset shows the number of workers displaying what could be Covid-19 symptoms has fallen to eight in the week starting 4 May from 19 in the week starting 3 March.

OGUK health, safety and environment director Trevor Stapleton said: This apparent reduction is a small move in the right direction, but we cant stress enough the need to remain alert, to continue to follow protocols and to raise any concerns in both on and offshore working environments.

OGUK continues to work on a cross industry basis through our Pandemic Steering Group, where our focus remains on increasing testing capacity for our key workers and improving our understanding of how Covid-19 is impacting our sector as we look towards ensuring our industry is able to recover from the significant challenges we are currently faced with.

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Drop in cases of suspected Covid-19 in offshore staff - The Scotsman

]]> Russia has long sought to fully develop its Northern Sea Route as a viable alternative to the Suez Canal," said Doug Matthews. Credit: Bureau of Safety and Environmental Enforcement

In January, with the Covid-19 outbreak still in its infancy and oil prices relatively stable, Russian President Vladimir Putin bullishly announced $300bn of incentives for new oil and gas projects north of the Arctic Circle.

Comprising direct government investments in infrastructure including the construction of 800km of new pipelines a ramping-up of activity by its oil and gas monopolies, and significant tax breaks for exploration, production and shipment, the plan aims to increase still further Russias influence in the region, thought to be home to as much as $35tn worth of untapped oil and gas reserves.

On 5 March, Moscow published On the Basics of State Policy of the Russian Federation in the Arctic for the Period Until 2035, its 15-year Arctic masterplan. In addition to incentivising industrial development in the Russian Arctic and aggressively developing the countrys Arctic energy resources, it proposes to boost the regions population and greatly expand the use of the Northern Sea Route.

Just three weeks later, much of the developed world is in lockdown as a result of the Covid-19 pandemic, and at the time of writing oil prices have plummeted to their lowest mark in 18 years.

So what now for Russias hydrocarbon ambitions in the Arctic, including Rosnefts giant Vostok Oil project, the biggest in global oil, which is expected to produce up to 100 million tons of oil a year?

The short answer is that the current oil price may not be high enough to justify exploration costs.

Vostok Oil involves the construction of a seaport, 800 km of new pipelines, 15 new towns and a pair of airports. In October, the Kremlin announced a 1tn(approximately $40bn) tax cut, reportedly in response to demands by Rosnefts CEO for preferential rates to attract investors.

As we are witnessing with the current price collapse, countries with significant oil and gas reserves can act to move the market down.However, Russia will likely need higher prices to make large-scale Arctic exploration and production projects viable and those higher prices could in turn encourage key importers to return to North American shale resources, which are currently being abandoned.

In terms of global oil and gas prices, I dont view Russian Arctic reserves as a significant advantage, although security of supply may become a problem for countries that tie their demand needs closely to Russian production, comments Doug Matthews, a Canadian energy writer and analyst.

We have seen this issue in Europe with the concern over Russian natural gas through Ukraine, and we may see China become more dependent on Russian oil, pipeline natural gas and liquefied natural gas (LNG).

As Russia moves to become the major supplier in certain markets, it could hope to influence public policy in those countries through its control of supply. Dominance inenergy should also be read as dominance throughenergy, he adds.

Rather than look abroad to the likes of Japan, India, China, and to a much lesser extent Canada, for essential servicessuch as shipbuilding, Matthews believes Russias long-term ambitions in the Arctic Circle will include increased investment in domestic industrial capacity.

Russia will want to encourage the development of its own expertise, particularly in respect of ice-breaking capacity, he says. The leading edge Arctic expertise once enjoyed by Canada think of the Father Lemeurice-breaker is now just a memory. With the shutdown of the Canadian Beaufort Sea in the 1980s, much of the expertise simply went away, never to return.

Russias broader plan to more than double maritime traffic in the Northern Sea Route (NSR) has both economic and symbolic significance for the country as it pushes to reassert itself in the Arctic Circle.

The NSR runs along the entiety of Russias territorial waters, from the Bering Strait between Siberia and Alaska to the Barents Sea, near Norway, and is inaccessible much of the year due to thick ice.

However, with ice sheets melting, and with significant investment in infrastructure, Russia hopes it will rival the traditional Europe-Asia sea route transporting goods and resources via the Suez Canal, including services for the Yamal LNG superplant based in the Yamal Peninsula above the Arctic Circle.

Russia has long sought to fully develop its NSR as a viable alternative to the Suez Canal, confirms Matthews. The more the government can increase shipping through the NSR in this case by supporting and shipping its own oil and gas resources the more credible the route becomes to other potential shippers.

So, we have a symbiotic situation where Russias oil and gas companies can use the NSR to move their Arctic resources, which have been locked until now, while the NSR can show the world it is a credible route by increasing this domestically sourced traffic.

The question remains as to why Russia appears to be doubling down on fossil fuel exploration in the frozen north at a time when the likes of Canada and the US have their plans in the region on ice.

The easy answer would seem to be that Russia has less strict environmental regulations governing Arctic exploration compared with Norway, Canada and, until recently, the US, Matthews says.

On the other hand, if the world is indeed transitioning away from fossil fuels, countries with vast reserves and the need for foreign exchange could be incentivised to produce at a full pace now, in advance of the coming demand destruction.

The technical and environmental challenges of Arctic oil and gas exploration are well-documented. Previous attempts have ended ignominiously; in 2013, less than a year after a 30-mile-long ice floe forced Shell to shut down its Burger-A well after just 24 hours, the Anglo-Dutch multinational announced that,as a precautionary measure,it was suspending offshore drilling in Alaska.

Two years on it pulled out altogether, having spent an estimated $7bn on exploration in the region. According to Matthews, the environmental risks to both Russian and Canadian waters are very real.

Arctic exploration and the environment would appear to be a zero sum game, he states. The greater the Arctic exploration and development activity, the greater the odds for incidents. We need only look at Shell Oils less than stellar performance in the Chukchi Sea.

The problem is, to turn an old phrase, what happens in the Arctic doesnt stay in the Arctic. An oil spill in the American Beaufort, for example, could impact its Canadian neighbour, and any blow out in Russias Arctic will see oil, associated gas,and pollutants flow to other countries.

Excerpt from:

The cold thaw: inside Russia's $300bn Arctic oil and gas investment - Offshore Technology

Save to read list Published by Nicholas Woodroof, Assistant Editor Oilfield Technology, Tuesday, 05 May 2020 10:30

A joint proposal from MENCK and LM Handling, both Acteon Group companies, has recently been selected to support piling operations for a platform installation off the coast of Trinidad and Tobago.

The project will draw on equipment and services provided out of MENCKs US-based rental fleet. MENCKs MHU 550S and an MHU 800S hammers are joined by LM Handlings internal lifting tools and both Acteon companies are working closely together to deliver the seamlessly integrated service package. Eskild Foeh, MENCK Sales Manager, commented: This is another fantastic opportunity for both MENCK and LMH to showcase our joint capabilities and the first-class services we can deliver. MENCK maintains part of its fleet of rental hammers in the region to support projects and developments on a timely and cost-effective basis.

Ivan Harnett, Acteon Market Development Leader for the Caribbean region, said: This project continues MENCKs long-standing history of supporting offshore and marine development projects in Trinidad and the wider Caribbean region.

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/05052020/menck-and-lm-handling-to-support-platform-installation-offshore-trinidad-and-tobago/

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Cuts in the industry's investment budgets will leave only US$60 billion worth of greenfield tenders for contractors to compete for, the lowest in two decades, according to Rystad Energy.

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MENCK and LM Handling to support platform installation offshore Trinidad and Tobago - Oilfield Technology

"We were frustrated by the activities of the TTJA how it has operated in disclosing the wind farm's environmental impact assessment program," Kihnu Municipal Mayor Ingvar Saare said on Vikerraadio morning program "Vikerhommik" on Tuesday. "We believe that the community in Kihnu and Hdemeeste, which are closest to the wind farm, have not been sufficiently included."

Saare explained that an environmental impact assessment must be drawn up in order to build the wind farm, which in turn requires the drawing up of an environmental impact assessment program which includes studies that must be conducted in the framework of the environmental impact assessment. If these studies are not listed, the developer will not conduct them.

The TTJA issued its program proposal on March 12, exactly when the emergency situation in Estonia began, and it lasted through March 31. On March 30, Kihnu Municipality proposed extending the proposal, but this proposal was not taken into consideration, Saare said.

For another thing, the municipal mayor continued, the TTJA did not fulfill the requirement to physically publicly distribute this information by posting it on a public info board, for example. The authority sent the local government a reference including a link to a notice, but the link didn't work, he added.

"If we're talking about a billion-euro project, it's been off to a very rough start," Saare said.

According to the municipal mayor, there has also been some confusion regarding the height of the planned wind turbines. While the turbine towers were initially to be 80-85 meters high, making for a combined height together with their blades of approximately 125 meters, there has since been talk of 300-meter-high wind turbines.

It is likewise yet unknown what effect the noise and vibrations generated by the wind turbines will have on fish populations in Prnu Bay. Fishing, however, is one of Kihnu's primary areas of activity.

Wind turbines generate visual pollution too, Saare noted, citing the Varbla turbines visible from the island despite being located 39 kilometers away. The planned new turbines, in comparison, are to be located just 10 kilometers from Kihnu.

This means that the owner of the wind farm should compensate for damages incurred to local life, he said. "We're not against [building the wind turbines]; rather, we want all of these aspects to be analyzed in the framework of the environmental impact assessment," he stressed.

Enefit Green is planning an offshore wind farm of up to 160 turbines and with a capacity of 1,000 megawatts near the island of Kihnu.

"If this wind farm is built, then we will be building a second Ida-Viru County, just this time into the heavens," Saare said.

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Kihnu worried about large offshore wind farm planned near island - ERR News

If you fancy something fast, fun and a bit leftfield then the Rodman 33 Offshore might just fit the bill...

It uses the same proven hull as Rodmans 33ft fast patrol boat but has been adapted for leisure use as the ultimate fast fishing boat.

As with all Rodman boats, the mouldings feel impressively robust with a hand-laid hull and vacuum-moulded locker lids for a nice smooth finish.

In true fishing boat style the cockpit had been left bare but fitted with flip-up benches to provide some seating when youre not hauling in 300lb Marlins.

There is a more leisure-focused cockpit in the bow with a big sunpad and mini dinette for use at anchor. That leaves only two proper forward-facing seats tucked behind the helm.

There is a small cuddy with a separate heads compartment deep in the hull but access is through a narrow opening in the side of the console down some very steep steps.

With its 50-knot top speed and long, wave-busting hull it should be a heap of fun to drive but choose your crew carefully if you want to enjoy its full potential.

LOA: 35ft 5in (10.7m)Beam: 9ft 8in (3.0m)Fuel capacity: 1,000 litres (220 gal)Engines: Twin 250-300hp outboardsTop speed: 50 knotsStarting price: 187,000 (ex. VAT)

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Rodman 33 Offshore: Is this the ultimate fast fishing boat? - Motor Boat and Yachting

Tuesday, 5 May 2020, 5:22 pmOpinion: Aaron Martin Yesterday the government announced temporary changes tothe Immigration Act to allow more flexibility to manage visachanges for the large numbers of migrants who are unable toleave New Zealand. Leading immigration lawyer AaronMartin explains the implications for offshore migrantsto the new rules.

The governments decision totemporarily change our immigration laws deals with thewoeful inadequacies of the current law when trying to managethe fallout from a pandemic.

From an administrativepoint of view it also deals with one very difficult problem:how do you make up new visa rules to accommodate themultiplicity of circumstances that arise from borderclosures that occurred globally and prevented people fromleaving and returning to New Zealand?

However, thecurrent provisions in the Act for extending temporary visasonly relate to those migrants that are already in NewZealand.

There is aglaring omission from the new law changes that have not beenaddressed what do you do about the visas issued topeople offshore requiring them to enter New Zealand by acertain date, when that is just impossible?

For thosewho have been issued resident visa but are currently livingout of New Zealand, that is an incredibly pressingproblem.

If they were issued their resident visa whenthey were offshore, then the visa holder has 12 months tofirst enter New Zealand. Currently, there is no ability forthat to be extended by immigration officers.

If atemporary visa holder is offshore with a deadline for thefirst entry, the back-office processes that have to beundertaken in order to reissue a visa with a new entry datecreates a burdensome level of work, particularly if you haveto do that for thousands of people.

Immigration NewZealand does need to address this issue to resolve theconcerns of thousands of migrants, whose visas are either inprocess or approved, who are now waiting in limbo.

Tothe thousands of visa holders currently stuck offshore withvisas due to expire, or with visas that require the holderto actually be working in New Zealand, the proposed power inthe new bill to extend the expiry date of visas will bringwith it a glimmer of hope that they may be provided somerelief.

One of their biggest complaints have been thattheir onshore cousins had their visas extended to 25September by the issue of an epidemic management noticeunder the current legislative regime, but they had clearlybeen forgotten when the Immigration Act wasformulated.

Another important change is thepower to suspend the ability of people offshore to makeapplications for visas by certain classes of people. Thiswill cause great concern to offshore visa holders.

Thecurrent border closure looks like it is going to be in placefor some time. For those offshore with visas expiring, theprospect of being denied the ability to make an applicationto come back is going to cause alarm.

At one level itis sensible if the border is closed and people continueto file applications, the date of receipt will determine thevisa criteria that will be applied.

If that visacriteria is somewhat out of date because of substantialchanges in circumstances as a consequence of a pandemic(read changes in the labour market for example), it makeslittle sense to assess that visa application under rulesthat have become outdated by circumstance. Practicallyspeaking, if people cant enter, why let them file anapplication?

So at this level, putting a pause on thereceipt of applications while new rules are developed todeal with the real-time situation the country currentlyfaces makes practical sense.

But it doesnt provideany solutions for those visa holders who have been grantedresidency or a work permit who are now stuck outside of thecountry. Many of these people had jobs lined up to go to orhad invested a significant amount of time and money to applyand be accepted.

The introduction of this new lawshows a clear intention by the government to utilise itquickly.

This new law will allow quick simple andeffective administrative decisions to be made. What thosedecisions will be is the crucial thing and determineshow this government's response is judged by the migrantcommunity, by locals seeking to bring elderly parents to NewZealand, and by employers whose employees are strandedoffshore.

Get it wrong and there will be significantreputational damage in an election year and to use anOlympics metaphor: it's often the dismount that determineswhether you're a winner.

Aaron Martin Principal Immigration Lawyer at New Zealand ImmigrationLaw

Aaron Martin is one of New Zealand's most highlyregarded and experienced immigration law practitioners. Hehas extensive experience assisting individuals, SMEs, andlarge multi-national corporate clients.

He hasexperience in general legal practice with over 20 years ofexperience and a thorough working knowledge of relevant taxlaw and commercial issues facing investor categoryapplicants and migrants wishing to establish businesses inNewZealand.

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New Immigration Laws Ignore The Plight Of Offshore Migrants - Scoop.co.nz