NZ grants first offshore permit post-ban

New Zealand has awarded its first new offshore petroleum exploration permit since the government reversed a ban on offshore oil and gas exploration. The 12-year permit was granted by New Zealand — Ministry of Business, Innovation and Employment to Australian company EnZed Energy, covering approximately 546 square kilometers in the offshore New Zealand — Taranaki Basin east of the New Zealand — Kupe Gas Field, including the New Zealand — Kaheru Prospect. Resources Minister Shane Jones announced the permit, stating it signals renewed investor confidence. The permit follows the reversal of the offshore exploration ban by Prime Minister Christopher Luxon's coalition government in 2025. EnZed Energy will begin a staged work program starting with seismic data review. The move comes as New Zealand's proven and probable natural gas reserves fell 23% year-on-year to 731 petajoules as of January 1, 2026, the lowest in over two decades. The government emphasizes the need for exploration to address potential gas shortages and support electricity generation during dry periods. EnZed Energy executive chairman Neil Young noted the New Zealand — Kaheru Prospect is well known as one of the most prospective areas in the country. The last major offshore discovery was the Pohokura field in 2000.