Key facts
- Small oil and gas companies are seeking offshore exploration permits in New Zealand.
- The rush is driven by the potential reinstatement of a drilling ban after the November election.
- The opposition Labour Party has stated it would ban new offshore permits if elected.
- Existing exploration contracts would be honored under a Labour government.
- New Zealand reopened exploration applications last year after a seven-year pause.
Small oil and gas companies are accelerating efforts to obtain offshore exploration permits in New Zealand, aiming to finalize agreements before the upcoming November general election. This surge in activity is prompted by the possibility that the opposition Labour Party, if elected, would reimpose a ban on new offshore drilling permits, although existing contracts would be honored.
Resources Minister Shane Jones has observed a recent increase in investor interest, attributing it to a clarified regulatory environment. Companies are working against time to secure rights, as a Labour government would cease issuing new permits. Acting Labour Energy and Resources spokesperson Tangi Utikere confirmed the party's stance, stating that while existing contracts would be respected, the government should not support an outdated industry.
This development follows New Zealand's decision earlier this year to reopen applications for oil and gas exploration after a seven-year hiatus. The country is also seeking to enhance energy security by planning its first LNG import terminal, expected to be operational by early 2028, amid declining domestic gas production. New Zealand's natural gas reserves have significantly diminished over the past decade, exacerbated by the previous offshore exploration ban from 2018 to 2025.