New Zealand grants first offshore petroleum permit since reversing exploration ban

Sydney: New Zealand's centre-right coalition government on Wednesday granted its first petroleum exploration permit since reversing a ban on offshore exploration imposed by former Prime Minister Jacinda Ardern's Labour government.

Prime Minister Christopher Luxon's conservative government, which won power in 2023, ended the offshore ‌exploration ⁠ban last year, ⁠seeking to avert gas shortages for industrial users and bolster power ​generation in dry years when hydropower output falls.

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"This permit marks a ​major milestone for New Zealand's energy sector and shows that without doubt, we are open for business," Resources Minister ​Shane Jones said.

Jones, an advocate for ⁠the fossil ‌fuel sector, said exploration remains important for ​understanding ​New Zealand's future energy options as existing gas ⁠fields mature.

New Zealand's proven and probable natural ​gas reserves fell 23% from the previous year ​to 731 petajoules as of January 1, 2026, the lowest level since records began more than two decades ago.

Jones said the data underscored the need to better understand the country's remaining resource potential.

Australian private company EnZed ‌Energy received a 12-year petroleum exploration permit in the offshore Taranaki Basin, Jones said.

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EnZed Energy will undertake a staged exploration ⁠programme beginning with a study of existing seismic data and geological studies to better understand the prospect's potential.

Seven oil and gas ​players have applied to secure offshore exploration rights ahead of the country's election in November, as the opposition Labour party intends to reimpose its ban if it gets elected while honouring existing permits.