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Oil firms rush offshore New Zealand permits ahead of election

New Zealand has reopened offshore oil and gas exploration after a seven-year pause, but companies say timing is now driven by the November election and a potential return of the drilling ban.

Reported · Written up by our desk · Energy

Small oil and gas companies are racing to secure offshore exploration permits in New Zealand ahead of the November general election, as they weigh the risk of a potential reinstatement of the drilling ban, OilPrice reports. New Zealand reopened for oil and gas exploration last year after a seven-year pause following the lifting of a ban put in place by the previous government. Despite that upstream policy reversal, the sources says it has not yet led to new drilling contracts, prompting some firms to focus on locking in permits before election-related uncertainty.

According to OilPrice, the opposition Labour Party, which has led in recent polls, said it would ban new offshore permits but honor existing contracts. That stance is driving the push to secure drilling rights before the election.

OilPrice also cites New Zealand Resources Minister Shane Jones, who told Reuters that investor interest has rebounded in recent months. The source says companies now have about three times as long to sign formal agreements for offshore exploration and, if Labour wins and forms a government, they would keep existing contracts.

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