The Government has awarded an Australian private company the first offshore petroleum exploration permit since the reversal of the 2018 exploration ban.
Resources Minister Shane Jones announced on Wednesday that EnZed Energy has secured a 12-year permit covering a 546-square-kilometre block in the offshore Taranaki Basin.
The permit area sits east of the producing Kupe gas field and encompasses the Kaheru prospect.
Jones says the decision proves the Coalition Government's policy reversal is working to attract investment back to the country's energy sector.
"This permit marks a major milestone for New Zealand's energy sector and shows that without doubt, we are open for business," Jones said in a statement.
Before any drill ships appear on the horizon, EnZed Energy will begin with a desk-based review. The initial stage of the company's work programme involves analysing existing seismic data and conducting geological studies rather than immediate drilling.
This approach sidesteps the need for new seismic surveying, which would trigger strict regulations tied to the West Coast North Island Marine Mammal Sanctuary.
The permit decision comes against a backdrop of rapidly declining domestic energy supplies.
According to government data, New Zealand's proven and probable natural gas reserves dropped 23% to 731 petajoules as of January 1, 2026.
Jones noted that natural gas is still critical for the country as existing fields mature.
"It supports electricity generation when renewable output is low and provides an important fuel and feedstock for major industries," he said.
The former Labour government introduced the ban on new offshore oil and gas exploration in 2018 to address climate change and transition to cleaner energy.
Parliament officially lifted the ban in July 2025 under Prime Minister Christopher Luxon, who campaigned on restoring energy security.
With a general election looming in November, Labour has promised to reinstate the ban if elected, though it has committed to honouring any permits already granted.
Seven other oil and gas companies have also applied for offshore exploration rights ahead of the upcoming election.
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