New Zealand has issued its inaugural offshore petroleum exploration permit following the reversal of a ban introduced during Jacinda Ardern’s Labour administration.

The permit allows Australian company EnZed Energy to explore approximately 546km² in the offshore Taranaki Basin east of the Kupe gas field.

The move follows a decision by Prime Minister Christopher Luxon's centre-right coalition government, elected in 2023, to end the offshore exploration ban in 2025.

The government aims to address concerns over potential gas shortages for industrial users and to help support electricity generation during dry periods when hydropower production is lower.

New Zealand Resources Minister Shane Jones stated that EnZed Energy secured the permit six months after the closure of a competitive market process managed by New Zealand Petroleum and Minerals.

The 12-year permit covers the Kaheru prospect, which has been identified as a key target for exploration.

Jones said: “This permit marks a major milestone for New Zealand’s energy sector and shows that, without doubt, we are open for business.

“As the first new offshore petroleum exploration permit granted since the ban was reversed, it is a clear signal that confidence is returning, and investors are once again prepared to back New Zealand’s resource potential.

“For too long, policy settings discouraged investment in a sector that plays a critical role in supporting energy security, industrial activity and economic growth.

“Since coming into office, this Coalition Government has taken steps to provide greater certainty for investors, improve the efficiency of regulatory processes and create a more attractive environment for responsible resource development.”

EnZed Energy is required to complete a staged work programme, beginning with a review of existing seismic data and geological studies to assess the potential of the prospect.

Recent figures show that New Zealand's proven and probable (2P) natural gas reserves had fallen by 23% year-on-year (YoY) to 731 petajoules (PJ) as of 1 January 2026, the lowest level since records began more than two decades ago.

The government has stressed the need for further exploration to understand the potential of remaining offshore resources.

Seven companies have submitted applications for offshore exploration rights, reported Reuters.