A new 10-year petroleum mining permit has been granted for the Puka field in onshore Taranaki.
Regulator New Zealand Petroleum and Minerals (NZP&M) awarded the permit to Matahio NZ Onshore Limited today.
The approved area covers about 19 square kilometres and includes the existing Puka field as well as the promising Oru prospect.
Discovered in 2012, the Puka site holds estimated recoverable reserves of 170,000 barrels of oil and 1.3 billion cubic feet of gas.
An independent assessment of the nearby Oru prospect points to prospective resources of 1.8 million barrels of oil and 1.2 billion cubic feet of gas.
Resources Minister Shane Jones welcomed the decision as a boost for national energy security.
"As only the second petroleum mining permit to be granted in the past eight years but one of two granted in the last year or so, this is yet another signal that momentum in New Zealand's petroleum sector is growing," Jones said.
He pointed out that natural gas will remain a critical part of the national energy mix for decades to come.
"It supports electricity generation during periods of low hydro inflows and renewable generation, and it provides energy and feedstock for many businesses that are important to our economy," he said.
All gas produced in New Zealand is consumed domestically by industrial users and for electricity generation.
High-quality light oil extracted in Taranaki is typically exported to international markets and refined into various petroleum products.
Jones added that extra oil from the Puka field will generate export earnings and contribute to regional economic activity in Taranaki.
While acknowledging that a single permit will not fix the country's broader energy challenges, he believes the region's natural resources have a clear role alongside renewable technologies.
"A resilient energy system requires diversity," Jones said. "New Zealand needs all of these components working together to deliver affordable, secure and reliable energy for households and businesses."
