A new application to prospect for oil and gas off the Canterbury coast has triggered a competitive process, with the Government saying it reflects growing confidence in the sector.

New Zealand Petroleum and Minerals has opened a three month process after receiving an application from CBX Energy Limited to explore frontier acreage in the offshore Canterbury Basin.

Resources Minister Shane Jones said the move showed renewed interest in developing New Zealand’s untapped energy resources.

“The Canterbury Basin, off the east coast of the South Island, is one of New Zealand’s 18 sedimentary basins with known or potential hydrocarbons. It has long been viewed as a promising but largely untapped opportunity,” Jones said.

“The basin remains far less explored than comparable regions overseas, highlighting how much potential is still to be tested.

“Further prospecting and exploration in the Canterbury Basin could unlock new domestic energy resources, strengthening New Zealand’s long term energy resilience and creating valuable economic opportunities.”

The application from CBX Energy includes plans for technical and economic studies, as well as work on a broader development strategy for the basin.

NZP&M will accept competing applications until 5pm on 24 June, with proposals assessed under the Minerals Programme for Petroleum 2025 and the Crown Minerals Act 1991.

A petroleum prospecting permit allows companies to carry out early stage, low impact work to identify potential oil and gas reserves.

The application follows the Government’s decision to remove the petroleum exploration ban in late 2025. Since then, two exploration permit applications have already progressed through the competitive process and are now under assessment, with decisions expected later this year.