Colin Ambler/cvnznews.com
New Zealand has issued its first new offshore petroleum exploration permit in six years — a milestone Resources Minister Shane Jones says proves the country is “open for business” again. The permit, granted to Australian explorer EnZed Energy, covers 546 square kilometres east of the Kupe gas field in the offshore Taranaki Basin.
For Jones, this is more than a bureaucratic update. It is a symbolic reversal of the Labour Government’s 2018 ban on new offshore oil and gas exploration, a policy that froze the sector, drove investment offshore, and became one of the most controversial energy decisions of the past decade. Jones has long criticised the ban as ideological overreach, famously championing his “Drill Baby, Drill” mantra — a slogan he repeated throughout the 2023 and 2026 campaigns.
“This permit marks a major milestone for New Zealand’s energy sector,” Jones said, arguing that confidence is returning and investors are again willing to back New Zealand’s resource potential.
The announcement comes as New Zealand’s proven and probable gas reserves have fallen to 731 petajoules — the lowest level since records began more than 20 years ago. Existing fields such as Pohokura and Maui are declining, and industry groups have repeatedly warned that without new exploration, New Zealand faces tightening supply, higher prices, and increased reliance on coal during dry years.
Energy analysts have welcomed the move, noting that exploration does not guarantee a discovery but is essential for long‑term planning. Some industrial users — particularly in food processing, manufacturing, and electricity generation — have publicly supported the Government’s shift, saying stable gas supply is critical for keeping plants open and jobs in New Zealand.
Environmental groups argue the decision is a step backwards, saying global markets are moving away from fossil fuels and that New Zealand should accelerate renewable investment instead. Some economists also question whether a single permit meaningfully changes the long‑term outlook, given global competition for exploration capital and the high cost of offshore drilling.
For Shane Jones, the permit is a clear ideological win. For the sector, it is a lifeline. But whether this moment marks a true resurgence — or simply a symbolic break from the past — will depend on what EnZed Energy finds beneath the Taranaki seabed.
More exploration may be coming. But discovery is another matter entirely.
