Types of petroleum permits
We issue permits to prospect, explore or mine petroleum.
These permits are defined in the Crown Minerals Act 1991 and the Minerals Programme for Petroleum 2025.
Overview of the minerals and petroleum regulatory environment
All petroleum permits are classified as Tier 1, as they are complex, higher risk, and have operations requiring a more proactive management and regulatory regime.
Petroleum prospecting permits
A petroleum prospecting permit allows the holder to carry out general investigations of an area, such as collecting geological and geophysical data. Drilling is not allowed under a prospecting permit.
Petroleum prospecting permits are generally granted as an exclusive permit, with the right to apply for a subsequent petroleum exploration permit over the same area.
The first application received for this type of petroleum prospecting permit (or a new exploration permit) for a particular area, once publicly notified, triggers a 3-month Open Market Period of Competition.
During this period of competition, other parties can apply for:
- an extension of land to a petroleum mining or exploration permit,
- a new petroleum exploration permit, or
- another prospecting permit over the same area of land.
These will be managed as competing applications.
Open Market competitive process
You can apply for any available area.
Where current petroleum permits, applications and Block Offers are located:
There are no specific size limits for a prospecting permit, but a permit would not ordinarily be granted if the area applied for exceeded the maximum allowed for an exploration permit in the same area.
Speculative prospectors
Alternatively, an applicant may apply for a non-exclusive petroleum prospecting permit with speculative prospector status.
Speculative prospectors are persons who carry out prospecting activities for the sole purpose of on-selling the information gathered to petroleum explorers and producers.
The holders of a speculative prospecting permit do not have the subsequent right to apply for an exploration permit, and an application for such a permit does not trigger an Open Market competitive process.
When evaluating your application, the Minister will determine if you are a speculative prospector by considering information such as your business model and business history.
Speculative permits are granted for a short duration, usually up to 2 years. In some cases, they may be granted for longer, up to a maximum of 4 years.
Petroleum exploration permits
A petroleum exploration permit allows the holder to search for petroleum deposits and assess whether it is possible to extract them. Activities allowed include:
- sampling
- geological and geophysical surveying
- geological studies
- testing of petroleum discoveries, and
- well drilling.
Petroleum exploration permits are issued for up to 15 years, depending on the location. Permits may be extended for up to 4 years for appraisal purposes - a second 4-year extension is also possible.
Petroleum exploration permits are exclusive, and they carry subsequent rights to apply for a mining permit.
If the first application received for a particular area is for a new petroleum exploration permit (or a (non-speculative) prospecting permit), that will trigger the 3-month Open Market competitive process.
Open Market competitive process
Subsequent right to apply for a petroleum exploration permit
If you were previously granted a petroleum prospecting permit with a subsequent right to apply for a petroleum exploration permit, you can apply for the exploration permit in exchange for surrendering your prospecting permit.
This application will not trigger an Open Market competitive process, as this process was already undertaken when you applied for your prospecting permit. Applications through the Block Offer tender process also do not trigger an Open Market competitive process.
Petroleum mining permits
A petroleum mining permit allows the holder the exclusive right to develop a discovered petroleum field to extract and produce petroleum. Mining permits are most commonly allocated to the holder of a petroleum exploration permit who has discovered a petroleum accumulation within the permit area.
These permits are granted based on the evaluation of an appraisal programme and work programme.
The size and duration of the permit is limited to the extent of the discovery but can last for a maximum of 40 years.
Licenses
Rights to prospect, explore and mine for petroleum issued before 1991, under the Petroleum Act 1937, are known as ‘Licenses’.
Land access
Permits do not give the permit holder automatic rights to access the permit area. Generally, for exploration and mining activities, permit holders must arrange land access with the landowner and occupier.
For minimum impact activity, 10 days' notice is required (except over special classes of land, such as urban conservation land).
Permits and land access in New Zealand [PDF 713KB]