New Zealand lifts ban on offshore oil and gas exploration

New Zealand’s parliament on Thursday passed legislation ending a ban on offshore oil and gas exploration, reversing a flagship policy of former Prime Minister Jacinda Ardern’s government.

The move will allow companies to apply for petroleum exploration permits outside the onshore Taranaki region from September, opening the door to renewed investment in the country’s fossil fuel sector.

Environmental groups criticised the decision, calling it a blow to New Zealand’s renewable energy ambitions.

“This government keeps choosing to undermine our resilience rather than transition to clean, green energy,” said Green Party Climate spokesperson Chloe Swarbrick.

In 2018, Ardern’s centre-left Labour government halted the granting of new offshore oil and gas permits as part of efforts to combat climate change and reduce reliance on fossil fuels.

Since taking office in late 2023, Prime Minister Christopher Luxon’s conservative administration has moved to unwind a series of Labour-era climate policies, including scrapping rebates for electric vehicles and fast-tracking mining approvals.

Resources Minister Shane Jones said the previous government’s ban had deterred investment and worsened domestic energy shortages.

“This government is pragmatic about the vital role natural gas will play in our energy mix in the decades ahead, and we have set a course for greater energy security backed by our own indigenous reserves,” Jones said.

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