New Zealand awards first offshore petroleum exploration permit after reversing ban
New Zealand's coalition centre-right government granted its first permit for petroleum exploration on Wednesday, reversing the ban imposed on offshore exploration by the former Labour government of Jacinda Ardern.
The conservative government of Prime Minister Christopher?Luxon, who came to power in 2023 and won the election, lifted the ban on offshore exploration last year. They wanted to avoid gas shortages in industrial areas, as well as boost power generation during dry years, when hydropower output drops.
The Resources Minister,?Shane Jones, said that this permit marked a significant milestone for New Zealand’s energy sector. It shows without doubt that we are open for businesses.
Jones, a fossil fuel advocate, said that exploration is important to understand New Zealand's energy future options, as the existing?gasfields mature.
New Zealand's natural gas reserves are down 23% from last year, to 731 petajoules by January 1, 2026. This is the lowest level recorded since records began over two decades ago.
Jones stated that the data highlighted?the importance of better understanding the remaining resource potential in the country.
Jones said that the Australian private company EnZed Energy has received a permit for 12 years to explore petroleum in the Taranaki Basin.
EnZed?will begin a programme of exploration in stages, starting with an analysis of the existing seismic data and geological studies.
Seven oil and gas companies have applied for offshore exploration rights before the November elections, because the opposition Labour party plans to reimpose their ban if they win while honoring existing permits.
(source: Reuters)
