New Zealand Set to Resume Oil, Gas Exploration
(MENAFN) New Zealand is set to resume petroleum exploration after passing the Crown Minerals Amendment Bill, announced Resources Minister Shane Jones on Thursday.
The legislation, currently progressing through parliament, reverses the 2018 prohibition on oil and gas exploration outside onshore Taranaki in the North Island. It also updates decommissioning regulations to align with global standards.
Additionally, the bill introduces a new permit targeting small-scale, non-commercial gold mining, supporting the government’s objective to boost investment in state-owned mineral assets.
Jones emphasized a practical energy approach, highlighting natural gas as a crucial component in New Zealand’s future energy portfolio.
He stated the earlier exploration ban discouraged investment and caused gas shortages, undermining energy reliability, investor confidence, and economic expansion.
The bill addresses a legal loophole by enabling ministers to hold previous permit holders accountable for environmental cleanup if current operators fail to cover costs, safeguarding public funds while fostering investment, Jones added.
Most provisions of the bill will be enacted immediately, with full implementation targeted by September 2025.
In the last Budget, the government earmarked 200 million NZD (118.62 million USD) over four years to co-invest in developing new gas fields.
Opposition from the Green Party has been strong, criticizing the repeal of the exploration ban as harmful to both the climate and living costs.
Jen Purdie, senior research fellow at the University of Otago, called for increased investment in renewable energy infrastructure and policies designed to keep fossil fuels untapped, in line with global climate commitments.
The legislation, currently progressing through parliament, reverses the 2018 prohibition on oil and gas exploration outside onshore Taranaki in the North Island. It also updates decommissioning regulations to align with global standards.
Additionally, the bill introduces a new permit targeting small-scale, non-commercial gold mining, supporting the government’s objective to boost investment in state-owned mineral assets.
Jones emphasized a practical energy approach, highlighting natural gas as a crucial component in New Zealand’s future energy portfolio.
He stated the earlier exploration ban discouraged investment and caused gas shortages, undermining energy reliability, investor confidence, and economic expansion.
The bill addresses a legal loophole by enabling ministers to hold previous permit holders accountable for environmental cleanup if current operators fail to cover costs, safeguarding public funds while fostering investment, Jones added.
Most provisions of the bill will be enacted immediately, with full implementation targeted by September 2025.
In the last Budget, the government earmarked 200 million NZD (118.62 million USD) over four years to co-invest in developing new gas fields.
Opposition from the Green Party has been strong, criticizing the repeal of the exploration ban as harmful to both the climate and living costs.
Jen Purdie, senior research fellow at the University of Otago, called for increased investment in renewable energy infrastructure and policies designed to keep fossil fuels untapped, in line with global climate commitments.
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