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New Zealand grants first offshore oil permit after drilling ban lift
The 12-year license in the Taranaki Basin goes to EnZed Energy as gas production has fallen to about 215 million cubic meters per month, from 415 million in 2017.
New Zealand has awarded its first offshore oil and gas exploration license since the previous government lifted a drilling ban last year, shifting the policy focus toward energy security rather than a transition away from hydrocarbons, according to OilPrice. The permit, awarded to Australian firm EnZed Energy, spans 12 years in the Taranaki Basin. The basin already has 400 wells drilled across 20 oil and gas fields, but official data cited by the outlet says its potential remains underexploited. OilPrice also notes that New Zealand was previously self-sufficient in gas, but that output has dropped sharply over the past decade. Gas production last year averaged about 215 million cubic meters per month, compared with about 415 million per month in 2017, leaving the country increasingly reliant on imports.
The outlet adds that the reversal comes amid growing awareness of the downsides of that import dependence, a theme that has intensified recently for importers following broader energy price and supply concerns. Resource minister Shane Jones said the permit marks a major milestone and signals New Zealand is open for business, as quoted by Reuters.