New Offshore Gas Exploration Permit Signals Energy Sector Revival

Resources Minister Shane Jones said the permit demonstrates renewed confidence in New Zealand's energy industry and sends a clear message that the country is once again welcoming responsible resource development.

New Zealand has granted its first new offshore petroleum exploration permit since the Government lifted the ban on offshore exploration, marking a significant step in its efforts to strengthen energy security and attract fresh investment into the country's resource sector.

Resources Minister Shane Jones said the permit demonstrates renewed confidence in New Zealand's energy industry and sends a clear message that the country is once again welcoming responsible resource development.

First permit issued after policy reversal

New Zealand Petroleum and Minerals (NZP&M) has awarded Australian company EnZed Energy a 12-year petroleum exploration permit covering around 546 square kilometres in the offshore Taranaki Basin, east of the Kupe gas field.

The permit follows a competitive application process that closed six months ago and represents the first offshore exploration approval since the Coalition Government reversed the previous ban on new offshore petroleum exploration.

The exploration area includes the Kaheru prospect, which has been identified as a promising target for further investigation.

Exploration programme to begin with geological studies

EnZed Energy will begin its work with a detailed review of existing seismic data alongside geological studies to better understand the area's potential before deciding whether further exploration activities are warranted. The staged programme is designed to reduce uncertainty and improve knowledge of the region's underground resources before any drilling decisions are made.

Officials noted that exploration is an important early step in assessing future energy opportunities, even though it does not guarantee the discovery of commercially viable gas reserves.

Falling gas reserves increase urgency

The Government says expanding exploration has become increasingly important as New Zealand's existing gas fields continue to mature.

As of 1 January 2026, the country's proven and probable natural gas reserves had fallen 23 percent from the previous year to 731 petajoules, the lowest recorded level in more than two decades. The decline has strengthened the case for identifying new domestic energy resources to support future demand.

Natural gas continues to play a key role in New Zealand's energy system by supporting electricity generation during periods of low renewable output while also supplying fuel and raw materials to major industrial users.

Government seeks greater investor confidence

Shane Jones said the Government has introduced policy changes intended to provide greater certainty for investors, improve regulatory efficiency and encourage responsible exploration activity.

He said rebuilding confidence in the sector is essential for supporting long-term energy security, industrial production and economic growth, while recognising that exploration remains only the first stage in determining whether new energy resources exist.