New Zealand approves new onshore petroleum permit in Taranaki

New Zealand's centre-right coalition government has approved a new onshore petroleum mining permit in the Taranaki region, a move aimed at increasing domestic gas availability. The 10-year licence, awarded to Matahio NZ Onshore Ltd, covers parts of the Puka field and the Oru prospect on the North Island.

Resources Minister Shane Jones said the permit is only the second of its kind granted in the past eight years, and the second within roughly the last year. He described it as a sign of renewed momentum in the country's petroleum sector.

Jones, a vocal supporter of fossil fuel development, argued that gas will remain essential to New Zealand's energy mix for decades. He noted its role in backing up electricity generation during dry years when hydropower output is low.

According to company estimates, the existing Puka discovery holds recoverable reserves of about 170,000 barrels of oil and 1.3 billion cubic feet of gas. An independent assessment of the Oru prospect suggests prospective resources of 1.8 million barrels of oil and 1.2 billion cubic feet of gas.

The permit marks a policy shift from the previous Labour-led government, which in 2018 blocked all new offshore permits and restricted onshore permits to existing Taranaki allocations. Critics have linked that restriction to rising energy prices as domestic gas production fell.