First new offshore petroleum permit granted

A bid to undertake exploration over an area east of Kupe gas field in Taranaki has become the first new petroleum exploration permit to be granted since the Coalition Government reversed the ban on offshore exploration, Resources Minister Shane Jones says.

Six months after the closure of a competitive market process for the application, New Zealand Petroleum and Minerals (NZP&M) has today awarded Australian explorer EnZed Energy a 12-year petroleum exploration permit covering about 546sq km in the offshore Taranaki Basin.

“This permit marks a major milestone for New Zealand’s energy sector and shows that without doubt, we are open for business,” Mr Jones says.

“As the first new offshore petroleum exploration permit granted since the ban was reversed, it is a clear signal that confidence is returning and investors are once again prepared to back New Zealand’s resource potential.”

The permit area covers the Kaheru prospect, a promising exploration target. Under the permit’s work programme, 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.

“For too long, policy settings discouraged investment in a sector that plays a critical role in supporting energy security, industrial activity and economic growth. Since coming into office, this Coalition Government has taken steps to provide greater certainty for investors, improve the efficiency of regulatory processes and create a more attractive environment for responsible resource development,” Mr Jones says.

With existing gas fields maturing, exploration remains an important part of understanding New Zealand’s future energy options. As at 1 January 2026, New Zealand’s proven and probable natural gas reserves had declined 23 per cent from the previous year to 731 petajoules - the lowest level since records began more than two decades ago. This underlines the need to better understand the country’s remaining resource potential.

“Natural gas remains a vital part of New Zealand’s energy system. It supports electricity generation when renewable output is low and provides an important fuel and feedstock for major industries,” Mr Jones says.

“Exploration does not guarantee a discovery but it is an essential first step in understanding the resources New Zealand may have available to support future prosperity.” ...