An Australian-registered company, EnZed Energy, is the sole applicant for a petroleum exploration permit off the coast of Taranaki, New Zealand. The application comes after the government overturned a 2018 ban on offshore oil and gas exploration last year.
First Application Since Ban Lifted
EnZed Energy applied last October for the right to explore a block off the Taranaki coast. A three-month window opened for competing applications, but closed Friday with no other companies submitting bids, according to the Ministry for Business Innovation and Employment (MBIE).
While the lack of competition streamlines the process, a permit is not automatically guaranteed. MBIE will now conduct a full assessment of EnZed Energy’s application, evaluating its work program, technical and financial capabilities, compliance history, and adherence to health, safety, and environmental standards.
Consultation and Potential Delays
The assessment will also involve consultation with other government agencies, including the Department of Conservation, and with local Māori groups, known as mana whenua. Resource markets general manager Katherine MacNeill stated that while there is no set timeframe, MBIE anticipates the process will take approximately six months.
Overlap with Sensitive Areas
The proposed exploration block overlaps significantly with the West Coast North Island Marine Mammal Sanctuary, which places restrictions on seismic surveying. However, EnZed Energy’s submitted work program indicates it intends to re-interpret existing seismic data, rather than conduct new surveys.
Future Prospects Remain Uncertain
University of Waikato law professor Barry Barton noted that even if a permit is granted, exploratory drilling is not a certainty. He explained that initial phases often involve desk work and data analysis, and that bringing a drilling rig to New Zealand is “hideously expensive.” The $200 million gas security fund announced by the government could also influence future decisions by EnZed Energy and other potential explorers.
Frequently Asked Questions
What is EnZed Energy’s connection to carbon capture technology?
EnZed Energy shares governance and premises with Australian Carbon Vault, a firm specializing in carbon capture and storage (CCUS). However, EnZed Energy’s work program for this exploration permit does not mention carbon capture.
Has there been previous interest in exploring this area?
A permit for part of this area was surrendered in 2016 after the previous permit holders determined it was not economically viable to proceed.
What is the next step in the process?
MBIE will now conduct a full assessment of EnZed Energy’s application, including its work program, financial capabilities, and compliance history, and will consult with relevant agencies and mana whenua.
Given the complexities of offshore exploration and the evolving energy landscape, what factors will ultimately determine whether New Zealand sees a resurgence in oil and gas production?
