Seven oil and gas companies have applied to secure offshore exploration rights in New Zealand after Labour confirms that a party win in the November election would mean the reimposition of its offshore exploration ban. However, it would honour existing permits.
Last year, the conservative government overturned an offshore drilling ban imposed by Jacinda Ardern’s Labour government in 2018 with the aim of ‘averting gas shortages for industrial users and bolstering power generation in dry years when hydropower output falls’, according to Reuters. A project development fund of NZ$200 million (€102.5 million) was also established, with funds available to companies looking to extract additional gas from mature reservoirs. Between 2024-2025, gas reserves in the country fell 23% to 731 petajoules, with all gas produced being used domestically.
Speaking to Reuters, acting Labour Energy and Resources spokesperson Tangi Utikere says: ‘Labour will reinstate the ban on new oil and gas permits because it’s the right thing for New Zealand’s energy security and for bringing down power bills over the long term. For existing permits, we have said that we would honour them, but we don’t believe the government should be propping up an outdated industry.’
