New Zealand is reopening petroleum exploration, following the passage of the Crown Minerals Amendment Bill, the Resources Minister Shane Jones has announced.Â
The bill, which is now advancing through Parliament, lifts the 2018 ban on oil and gas exploration beyond the onshore Taranaki region in the North Island. It also updates decommissioning rules to align with international standards.
Additionally, the bill introduces a new permit for small-scale, non-commercial gold mining, reflecting the government’s broader strategy to attract investment in state-owned mineral resources.
Jones emphasized the need for a practical energy policy, highlighting natural gas as a vital part of New Zealand’s future energy mix. He said the previous ban discouraged investment and contributed to gas shortages, ultimately affecting energy security, investor confidence, and economic growth.
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A key provision in the bill closes a legal loophole by enabling ministers to hold former permit holders responsible for cleanup costs if current operators are unable to meet those obligations. This aims to protect public funds while fostering investor confidence.
Most provisions in the legislation will take effect immediately, with full implementation expected by September 2025.
The government has also allocated 200 million NZ dollars (approximately 118.62 million US dollars) over the next four years to co-invest in new gas fields.
However, the Green Party has strongly opposed the move, arguing that repealing the oil and gas ban will worsen the climate crisis and increase the cost of living.
Dr. Jen Purdie, a senior research fellow at the University of Otago, called for greater investment in renewable energy infrastructure and urged the government to keep fossil fuels in the ground in line with international climate commitments.
NAN
