New Taranaki Petroleum Permit Targets Fresh Oil and Gas Supply

Resources Minister Shane Jones said the permit is only the second petroleum mining permit granted in the past eight years, while noting that two have now been issued within roughly the past year.

A new 10-year petroleum mining permit has been granted for an onshore Taranaki oil and gas field, opening the way for additional natural gas to enter New Zealand's domestic market while new oil production could generate export and royalty income.

New Zealand Petroleum and Minerals has granted the permit to Matahio NZ Onshore Limited for the Puka field, covering about 19 square kilometres and including the Oru prospect. Puka was discovered in 2012 and contains both oil and natural gas resources.

Puka Field Holds Oil and Gas Reserves

Matahio estimates the existing Puka discovery contains recoverable reserves of about 170,000 barrels of oil and 1.3 billion cubic feet of natural gas, providing a relatively modest new source of domestic energy over the life of the permit.

The Oru prospect could increase the potential of the development, with an independent assessment estimating prospective resources of 1.8 million barrels of oil and 1.2 billion cubic feet of gas. Prospective resources represent estimated quantities that could potentially be recovered from an undiscovered accumulation, meaning exploration and further assessment would be needed before production could be confirmed.

Resources Minister Shane Jones said the permit is only the second petroleum mining permit granted in the past eight years, while noting that two have now been issued within roughly the past year.

Gas Production Could Support Domestic Energy Supply

Natural gas produced in New Zealand is used within the country, supplying industrial businesses and helping generate electricity during periods when hydro, wind and other renewable sources cannot provide enough power.

Jones said declining domestic gas reserves have contributed to energy security concerns, making additional sources valuable even when individual developments are not large enough to address the wider supply challenge on their own.

Gas also serves as both an energy source and industrial feedstock for some businesses, giving new production a role beyond electricity generation as New Zealand continues adding renewable and emerging energy technologies to its energy system.

Taranaki Oil Could Generate Export and Regional Income

The light oil produced in Taranaki is generally sold into international markets, where it can be refined into petroleum products, meaning additional production from Puka could generate export earnings while contributing royalties and economic activity within the region.

Jones said the permit demonstrates that further opportunities remain within the Taranaki basin and argued that petroleum development can operate alongside continued investment in renewable energy and newer technologies.

The new permit will not resolve New Zealand's broader energy pressures by itself, but the Government sees it as part of a more diverse supply system where domestic gas, renewable generation, emerging technologies and existing natural resources contribute to keeping energy available and reliable for households and businesses.