New Zealand ends Ardern-era ban on oil and gas exploration

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(Reuters) -New Zealand’s parliament on Thursday passed legislation to reopen the country for offshore oil and gas exploration, lifting a ban imposed by former Prime Minister Jacinda Ardern.

The law will allow companies to apply as early as September for petroleum exploration permits beyond onshore Taranaki, an energy-rich region on the country’s North Island.

Environmental groups said the decision to restart exploration was a setback for the country’s transition to renewable energy.

“This government keeps choosing to undermine our resilience rather than transition to clean, green energy,” said Green Party Climate spokesperson Chloe Swarbrick.

In 2018, the centre-left Labour government led by Ardern halted the granting of new offshore oil and gas exploration permits in a bid to tackle climate change and reduce New Zealand’s reliance on fossil fuels.

Since winning power in late 2023, Prime Minister Christopher Luxon’s conservative government has passed numerous measures rolling back Labour’s progressive agenda, including repealing rebates for green cars and fast-tracking mining projects.

Resources Minister Shane Jones, an advocate for the fossil fuel sector, said Ardern’s ban had reduced new investment in the oil and gas sector and exacerbated domestic energy shortages.

“This government is pragmatic about the vital role natural gas will play in our energy mix in the decades ahead and we have set a course for greater energy security backed by our own indigenous reserves,” Jones said.

The bill passed by 68 votes to 54.

(Reporting by Christine Chen in Sydney; Editing by Tom Hogue)