New Zealand opens up applications for oil and Gas Exploration Nationwide

New Zealand's Government announced on Thursday that it has opened applications for new permits for oil and gas exploration, following a ban in 2018 on new exploration of fossil fuels.

In a press release, the government announced that it would not only invite applicants to bid for licences for oil exploration but also introduce a "new open market" which will allow companies to apply at any time for exploration permits.

In a statement, Minister of Resources Shane Jones stated that the open market application system better balances the need to increase gas supply while maintaining robust competition. This is done by allowing operators to apply as soon as they are ready for exploration and prospecting acreage.

New Zealand's government lifted the ban on oil and gas exploration earlier this year. It cited the need to increase exports and gas reserves, which were in decline.

Jones stated that "Confidence was severely damaged in the gas industry when the ban on exploration was implemented in 2018. This had a negative impact on investment in our fields, and prevented the new exploration necessary to meet the demand in years to come."

The decision has been criticized by environmental and opposition political groups.

Scott Willis, Green Party spokesperson for energy, said that reopening exploration would not reduce energy prices on the short-term as it takes 16 years from exploration to fossil fuel production. (Reporting and editing by Kate Mayberry; Lucy Craymer)

(source: Reuters)