NZ Reopens Petroleum Exploration Permits, Launches New Gas and Mining Pathways

The New Zealand Government has moved to revive petroleum exploration in the country, with Resources Minister Shane Jones announcing that operators can once again apply for new prospecting and exploration permits beyond onshore Taranaki. The decision, part of the Coalition Government’s broader energy strategy, is aimed at boosting gas reserves and strengthening New Zealand’s medium-term energy security.

A Shift from the 2018 Exploration Ban

Minister Jones said that investor confidence in the sector had been severely undermined by the 2018 exploration ban, which halted offshore oil and gas exploration and stifled new investment. This, he argued, has left the country exposed to a looming gap in gas supply at a time when energy demand continues to rise.

“Confidence in the gas sector took a significant hit when the exploration ban was introduced in 2018, impacting investment in our producing fields and preventing the vital new exploration needed to meet demand in the years to come. This has left a gaping hole in New Zealand’s medium-term energy security,” Jones said.

Two Pathways for Exploration Permits

The new policy reopens opportunities for petroleum operators through a dual-track permitting system:

1. Block Offer Competitive Tender – a traditional promotional tool that allocates exploration acreage through competitive bidding rounds.

2. Open Market Application Process – a newly introduced pathway where operators can apply for acreage at any time. Once an application is lodged, New Zealand Petroleum and Minerals (NZP&M) will open a three-month window for competing bids over the same area. Permits will then be awarded based on the strength of proposed work programmes and outcomes.

Jones emphasized that this new system is designed to speed up exploration while maintaining competitive fairness.

“The open market application process better balances urgency with robust competition by allowing an operator to apply for prospecting and exploration acreage as soon as they are ready.”

$200 Million in Gas Co-Investment

The government is also preparing to back exploration with public funding. Jones confirmed that details will soon be released on the Coalition Government’s $200 million tagged contingency fund in Budget 2025, which will support co-investment in new gas fields.

According to the Minister, this funding is designed to attract private partners while accelerating development of new reserves that can help bridge New Zealand’s energy supply gap.

Supporting Hobby Miners with a New Tier 3 Category

Alongside petroleum reforms, the government has also streamlined processes for small-scale gold miners. A new Tier 3 permit category has been introduced to make it easier for hobby miners—around 200 active operators on the West Coast and in Otago—to secure approvals without facing the same regulatory hurdles as large-scale operations.

The changes include:

• Simplified application tests.

• Reduced reporting requirements.

• Lower compliance costs, better aligned with the scale of hobby mining.

“This new permit category is great news for the 200 hobby miners predominantly operating on the West Coast and in Otago – and many more who have been put off seeking approval due to stringent regulatory requirements and compliance costs designed for larger operations,” Jones said.

Balancing Regulation and Growth

By cutting red tape for small-scale miners, the government aims to allow NZP&M to focus on higher-value, more complex applications, while supporting grassroots gold mining traditions that remain part of regional economies.

Looking Ahead

The announcement signals a major policy shift as the Coalition Government looks to double defence spending by 2032/33 and simultaneously strengthen the country’s energy resilience. With petroleum exploration reopening and a fresh injection of government support for gas development, officials hope to restore confidence among investors while addressing looming supply concerns.

For small-scale miners, the new permit category represents a revitalization of local heritage industries, ensuring that recreational and small operators can thrive without being stifled by unnecessary bureaucracy.

Together, these initiatives reflect a government determined to balance economic growth, energy security, and regulatory reform in the face of both domestic needs and global energy volatility.