New Zealand has issued its first offshore oil and gas permit since lifting a drilling ban in 2025 that had been introduced by the previous administration as part of its strategy to shift away from hydrocarbons and toward electricity generated from low-carbon sources. The current administration has instead placed greater emphasis on energy security and reopened the country’s oil and gas sector by inviting companies to compete for exploration opportunities. As a result of that policy change, Australian oil and gas company EnZed Energy has secured the first offshore oil and gas permit, marking the return of offshore exploration activity in the country.
The exploration permit awarded to EnZed Energy covers a 12-year period in the Taranaki Basin. According to official New Zealand government data, the basin already contains 400 wells spread across 20 oil and gas fields, although authorities continue to view the area’s resource potential as underdeveloped. The approval of this offshore oil and gas permit represents the first exploration license issued following the government’s decision to remove restrictions on offshore drilling.
Declining Domestic Gas Production Drives Policy Shift
Although New Zealand has never been widely recognized as a major oil and gas producer, the country was previously self-sufficient in natural gas. That position has changed over roughly the past decade as domestic production has fallen significantly while restrictions prevented new exploration activity. Official figures show gas production averaged approximately 215 million cu m per month in 2025, a substantial decline from the 415 million cu m per month recorded in 2017. The reduction in domestic output has increased the country’s dependence on imported supplies, exposing it to the challenges experienced by other energy-importing nations.
In response to these developments, the government had already announced plans to develop an LNG import terminal, targeting operations as early as next year or in 2028. In early 2026, New Zealand’s Energy Minister Simon Watts also highlighted the challenges facing the country’s electricity system despite rapid renewable energy growth. He said, “New Zealand is experiencing a renewable electricity boom, but a rapidly declining gas supply has left our electricity sector exposed during dry years, when our hydro lakes run low.”
