Resources minister Shane Jones announced on Thursday that New Zealand would reopen petroleum exploration after passing the Crown Minerals Amendment Bill.

The bill, now moving through parliament, lifted the 2018 ban on oil and gas exploration beyond onshore Taranaki in the North Island and updated decommissioning rules to meet international standards.

It also establishes a new permit for small-scale non-commercial gold mining, reflecting the government’s aim to increase investment in government-owned mineral resources.

Mr Jones stressed the importance of a pragmatic energy strategy, with natural gas playing a key role in New Zealand’s future energy mix.

He stated that the previous exploration ban had deterred investment and led to gas shortages, harming energy security, investor confidence, and economic growth.

The bill closed a legal gap by allowing ministers to hold former permit-holders liable for cleanup costs if current operators can’t cover them, protecting public funds while encouraging investment, he added.

According to the minister, most measures will take effect immediately, with full implementation by September 2025.

The New Zealand government allocated NZD200 million ($118.62 million) over four years in the last budget to co-invest in new gas fields.

However, the opposition Green Party has criticised the government’s decision to repeal the oil and gas ban, arguing it will worsen both the climate and cost of living crises.

Jen Purdie, a senior research fellow from the University of Otago, advocated for greater investment in renewable energy infrastructure and policies to keep fossil fuels in the ground, aligning with international climate goals.

(Xinhua/NAN)