Wellington: New Zealand was reopening petroleum exploration after passing the Crown Minerals Amendment Bill, Resources Minister Shane Jones announced Thursday. The bill, now moving through parliament, lifts the 2018 ban on oil and gas exploration beyond onshore Taranaki in the North Island and updates 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, Xinhua News Agency reported.
Jones stressed the importance of a pragmatic energy strategy, with natural gas playing a key role in New Zealand’s future energy mix.
He said the previous exploration ban deterred investment and led to gas shortages, hurting 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 take effect immediately, with full implementation by September 2025.
The New Zealand government allocated 200 million NZ dollars (118.62 million U.S. dollars) 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, 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 in alignment with international climate goals.
Earlier on July 8, New Zealand launched its first national Artificial Intelligence (AI) Strategy, aiming to boost productivity and drive economic growth. Science, Innovation and Technology Minister of New Zealand, Shane Reti announced the initiative on July 8, highlighting that AI could contribute up to 76 billion NZ dollars (45.76 billion US dollars) to New Zealand’s GDP by 2038.
However, the minister noted that the nation is currently lagging behind other advanced economies in AI readiness, with many businesses yet to embrace the technology. The government’s approach is designed to foster AI adoption by reducing regulatory barriers, offering clear guidance, and encouraging responsible innovation, Reti said.
The strategy emphasises a light-touch regulatory environment to give businesses confidence to invest in the AI technology, said Reti, stressing the potential for private sector innovation to unlock new products and services, enhance efficiency, and improve decision-making.
New Zealand’s strengths as being “smart adopters” are expected to be shown across sectors, from precision agriculture to advanced healthcare diagnostics, he said, adding the government will continue collaborating with international partners to ensure responsible AI development.
To build public trust, the government has also released Responsible AI Guidance, supporting businesses in the safe and innovative use of AI, the minister said, adding existing laws will be used to manage associated risks and concerns.
(IANS)
