The government has given an Australian company called EnZed Energy permission to look for oil and gas under the sea off the Taranaki coast. It's the first permit of its kind since the ban on new offshore exploration was lifted on 31 July (RNZ).

Resources Minister Shane Jones announced the permit in a statement, calling it a "major milestone." The permit covers a 546 square kilometre area east of the Kupe gas field and includes a spot called the Kaheru prospect, which Jones described as promising for exploration (RNZ).

The company won't start drilling straight away. Instead, EnZed Energy will first study existing seismic data — which is like taking an ultrasound of the seabed to see what's underneath — and do geological work. The permit area is in a region that already has oil and gas infrastructure, next to the Kupe field, which is currently producing gas.

Jones said previous rules had put companies off investing in offshore oil and gas. He said proven and probable gas reserves — the amount of gas the country is confident it can still extract — fell 23 percent in 2025 to the lowest level since records began. He framed the permit as part of the government's response to that decline (RNZ).

Before the permit was granted, the Ministry of Business, Innovation and Employment (MBIE) met with the company. A briefing was prepared on 27 March 2026 ahead of a meeting on 30 March 2026 (MBIE). Jones also travelled to Taranaki in late February, with a briefing prepared on 20 February 2026 for a trip on 24 February 2026 (MBIE).

No other company applied for the same area. EnZed Energy was the only bidder (RNZ).

This permit is the first real result of the government's decision to reverse a ban that had been in place since 2018. The 12-year term gives the company plenty of time to move from desk studies to deciding whether to drill.

The bigger picture here is about keeping the country's gas supply secure. Natural gas is used to generate electricity when demand spikes, and as a raw material for making products at places like Kapuni and Waitara Valley. With gas reserves at their lowest since records began, there's a tension: the government wants to encourage new exploration, but even if gas is found today, it would take years before it could actually be used.

The Kaheru prospect isn't a new discovery — it was already known about. The fact that a company applied for a permit there shows the area was considered worth exploring, but the lack of competing bids suggests broader industry interest is limited. Large international oil and gas companies have mostly left New Zealand's offshore areas over the past decade, leaving smaller companies like EnZed Energy to do the new exploring.

Because the work starts with studies rather than drilling, the immediate environmental impact is small. Under New Zealand law, the company has to meet certain minimum work requirements, and any actual drilling would need separate approvals under other laws.

For Taranaki, where oil and gas is still part of the local economy, the permit shows the door is open for new exploration. Whether more companies follow, and whether the Kaheru prospect leads to anything beyond desk studies, will be the real test of whether lifting the ban brings lasting investment.