Decommissioning of petroleum infrastructure and wells

Decommissioning is the process of permanently retiring petroleum infrastructure and wells in a way that manages risks and ensures sites are left in a safe and stable condition, so they do not pose ongoing safety or environmental risks.

It usually includes:

• plugging and abandoning wells
• removing equipment and facilities, and
• restoring sites to a safe and stable condition.

Decommissioning can be complex and costly. It must be carried out safely, responsibly and without leaving risks and costs to the Crown, communities, or landowners.

Roles in decommissioning

Decommissioning involves multiple parties, each with different roles and responsibilities.

Permit and licence holders

All permit and licence holders are responsible for:

• planning how petroleum infrastructure and wells will be decommissioned
• providing evidence and information to support decommissioning decisions, which can include plans, cost estimates, asset registers and financial and capability information
• ensuring they have the technical capability and resources to carry out decommissioning
• fully funding and carrying out decommissioning of their petroleum infrastructure and wells in line with all relevant regulations and legislation.

New Zealand Petroleum and Minerals

We administer and regulate permit and licence holders’ financial and technical capability to meet decommissioning responsibilities under the Crown Minerals Act 1991. This includes:

• assessing whether permit and licence holders have the capability and financial resources to meet their obligations
• ensuring permit and licence holders have financial security arrangements in place to meet the cost of decommissioning when they arise
• reviewing decommissioning plans, cost estimates and supporting evidence
• advising on requests for exemptions from holding financial security for meeting of decommissioning obligations.

Other regulators

Other regulators are responsible for approving decommissioning requirements for removal of infrastructure and ensuring decommissioning is carried out safely and in line with the relevant requirements, depending on the location and nature of the activities.

This can include:

• The Environmental Protection Authority (EPA) for offshore activities, beyond 12 nautical miles offshore.
• Regional councils and territorial authorities for activities onshore and up to 12 nautical miles offshore.
• The Department of Conservation for projects that include conservation land or protected areas.
• WorkSafe New Zealand for health and safety regulations around decommissioning activities.

Decommissioning obligations and the permit lifecycle

Before a permit is granted

The Minister must be confident the applicant will have the ability to carry out and pay for their decommissioning obligations, before granting an application for a new permit. If you make an application, you will be required to provide information to support this decision.

Apply for petroleum permits and manage current permits

During the lifecycle of a permit

The Minister may assess a permit or licence holder’s financial capability after a permit has been granted. This assessment helps ensure that decommissioning obligations and related decisions remain appropriate.

To ensure funds for decommissioning are available when needed, permit and licence holders must establish an acceptable financial security. We usually assess whether a financial security arrangement is appropriate after assessing the permit holder’s financial capability.

Financial capability and financial securities guidelines

If permit or licence holders think that their decommissioning obligations are not appropriate, they can apply for an exemption or deferral.

If changes are made to a permit

Certain changes to a permit or licence, such as changes to the operator, ownership, or control, require the Ministers approval. When advising on these changes, we may consider the permit holder’s ability to meet their decommissioning obligations.

Change of control - Petroleum permits

Some changes also require the Minister for Resources and Minister of Finance to decide whether an outgoing guarantee is required from the exiting party (or a party related to them).

Outgoing guarantees

After a permit has been successfully decommissioned

Once petroleum infrastructure and wells have been decommissioned in accordance with the relevant requirements, a permit or licence holder’s primary decommissioning obligations under the CMA are complete. However, responsibility may continue if post-decommissioning issues arise, and a permit or licence holder may be required to provide information, assurances, or take remedial action to address risks or impacts.

Establishing acceptable financial security arrangements

Following engagement with permit and licence holders in October 2025, we have begun to establish acceptable financial security arrangements.

The process generally includes:

• assessing any exemption or deferral applications for petroleum infrastructure or wells
• undertaking a financial capability assessment of the permit or license holder
• the permit or licence holder proposing a financial security arrangement
• the Minister for Resources determining an acceptable financial security arrangement
• documenting and establishing the accepted financial security arrangement.

To manage the workload and support an efficient process, permit and licence holders have been allocated to one of three tranches. Each tranche generally progresses sequentially through the steps outlined above.

The first tranche began in October 2025, and we are communicating with the further permit and license holders as we progress through each tranche.

For more information on financial capability assessment and financial security arrangements see:

Financial capability and financial securities guidelines

More information

Detailed information on decommissioning can be found in the Crown Minerals Act 1991 and the Minerals Programme for Petroleum 2025.

Crown Minerals Act 1991 — New Zealand Legislation

 Minerals Programme for Petroleum 2025 [PDF 1.8MB]