New Zealand announces ban on offshore drilling

New Zealand has announced a ban on all new offshore oil and gas exploration after seven years of public protests – dealing a significant blow to major oil companies with existing offshore drilling licenses in the country.

Prime Minister Jacinda Ardern has announced that the country would no longer be granting any new offshore oil and gas exploration permits as the country steps up its efforts towards a carbon neutral economy.

The landmark move comes after almost a decade of protests and fierce resistance towards foreign oil companies from the New Zealand natives and environmental NGOs.

‘We must take this step as part of our package of measures to tackle climate change,’ Ardern said in a public statement.

Each year, the country produces over 15mn b/y of oil and 175bn cubic feet of gas, according to figures from the New Zealand Petroleum Exploration and Production Association. Most of its production is extracted from the five offshore fields of Maui, Pohokura, Kupe, Maari and Tui.

Over the past ten years, the South Pacific nation has attracted considerable interest from some of the world’s largest oil companies – including Shell, Anadarko, Petrobas, Statoil, Chevron and OMV – all of which have sought to carry out exploratory drilling off the country’s shores.

The government has also pledged to continue offering the onshore region of Taranaki for exploration, and says it will not revoke any existing exploration contracts.