The Coalition Government has awarded New Zealand’s first new offshore petroleum exploration permit since overturning the previous government’s ban on offshore oil and gas exploration, describing the move as a significant milestone for the country’s energy future.
Resources Minister Shane Jones announced that New Zealand Petroleum and Minerals (NZP&M) has granted Australian company EnZed Energy a 12-year exploration permit covering approximately 546 square kilometres in the offshore Taranaki Basin. The permit includes the Kaheru prospect, located east of the Kupe gas field.
The permit is the first to be issued since the Coalition Government repealed the offshore exploration ban introduced by the previous Labour Government in 2018.
The Government says the decision demonstrates that New Zealand is once again open to investment in its energy sector and is part of a broader strategy to strengthen long-term energy security as existing gas fields decline.
EnZed Energy’s exploration programme will begin with analysis of existing seismic information and geological studies to determine whether commercially recoverable petroleum resources exist beneath the permit area.
Exploration activities do not include immediate drilling, with any future drilling proposals subject to further regulatory approvals and environmental assessments.
The Government says the decision comes as New Zealand’s proven and probable natural gas reserves continue to fall.
Official figures show reserves declined by 23 percent over the past year to 731 petajoules, the lowest level recorded since modern reporting began more than two decades ago. Ministers argue the decline highlights the need to better understand the country’s remaining energy resources.
The Coalition maintains natural gas will continue to play an important role in electricity generation during periods of low hydro lake levels and remains an essential fuel source for several major industries.
The permit is likely to become a major issue during the 2026 General Election campaign.
Labour has already indicated it would restore the ban on new offshore petroleum exploration if it returns to government, while honouring permits already granted.
The decision also follows strong interest from the energy sector, with multiple companies applying for offshore exploration rights after the Government reopened the permitting process.
The move has reignited debate over New Zealand’s energy future.
Supporters argue domestic natural gas remains critical for maintaining energy security, supporting industrial production and reducing reliance on imported fuels while renewable generation continues to expand.
Environmental organisations, however, continue to oppose new fossil fuel exploration, arguing investment should instead focus on renewable energy, energy efficiency and accelerating the transition to a low-emissions economy.
Offshore resource development also raises important issues for Māori, particularly iwi and hapū with customary interests in coastal and marine environments.
Resource exploration proposals can intersect with matters relating to kaitiakitanga, marine ecosystems, customary fisheries and Treaty relationships, making meaningful engagement with tangata whenua an important part of future regulatory processes.
As exploration progresses, questions around environmental protection, economic development and Māori participation are expected to remain central to discussions about New Zealand’s long-term energy strategy.
For now, the granting of the Kaheru permit marks a significant policy shift, signalling the Government’s intention to revive offshore petroleum exploration while balancing energy security, economic growth and environmental obligations.
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