Key facts
- New Zealand has awarded its first offshore oil and gas exploration license since lifting a ban on drilling.
- Australian firm EnZed Energy secured the 12-year permit in the Taranaki Basin.
- The government reversed the previous ban to focus on energy security.
- Declining domestic gas production has made New Zealand increasingly reliant on imports.
New Zealand's government has awarded the first offshore oil and gas exploration license since lifting a ban on drilling, a move aimed at enhancing the nation's energy security. Australian firm EnZed Energy secured a 12-year permit in the Taranaki Basin, an area with existing oil and gas fields but considered underexploited.
The previous government had implemented a ban on drilling to promote a transition away from hydrocarbons. However, the current administration reversed this policy, inviting bids for the country's oil and gas resources.
Resource minister Shane Jones stated that the permit marks a significant milestone and signals New Zealand's openness for business. The decision comes as the country faces declining domestic gas production, which has led to increased reliance on imports and exposed the electricity sector during dry periods when hydropower is limited.
New Zealand was once self-sufficient in gas, but production has fallen sharply over the past decade. The government is also planning to build an LNG import terminal to further address supply concerns.