New Zealand has granted its first offshore petroleum exploration permit since reversing a ban introduced by the previous Labour government, as the centre-right coalition looks to strengthen energy security and address concerns over future gas supplies.
Australian private company EnZed Energy received a 12-year exploration permit covering the offshore Taranaki Basin, Resources Minister Shane Jones said on Wednesday. The company will begin its programme by analysing existing seismic data and carrying out geological studies to assess the area’s potential.
“This permit marks a major milestone for New Zealand’s energy sector and shows that without doubt, we are open for business,” Jones said.
The move follows Prime Minister Christopher Luxon’s government decision last year to end the offshore exploration ban, with the administration arguing that additional gas resources are needed to support industrial users and electricity generation during periods of lower hydropower output.
Jones, who has supported the fossil fuel sector, said exploration remains important as existing gas fields mature and the country seeks a clearer understanding of its remaining energy resources.
New Zealand’s proven and probable natural gas reserves dropped 23% year-on-year to 731 petajoules as of 1 January 2026, the lowest level recorded in more than two decades, according to government data.
The permit decision comes ahead of New Zealand’s November election, with seven oil and gas companies having applied for offshore exploration rights. The opposition Labour Party has said it intends to reinstate the exploration ban if it returns to power, while honouring existing permits.
