The company, whose shares fell 3.2 percent, said the move would not have any immediate material impact on its financial position and it would continue with its existing projects.
There are more than 30 active licenses in New Zealand at the moment, of which 22 are for offshore blocks. "We're striking the right balance for New Zealand - we're protecting existing industry, and protecting future generations from climate change".
Welcomed by environmentalists, the move has attracted energy sector criticism for lack of consultation and questions over supplying New Zealand's long-term energy requirements.
Meanwhile, Regional Economic Development Minister Shane Jones' body language was so uncomfortable it looked as if he was trying to give the impression he was a hostage.
"This decision may raise doubts among investors as to the viability of investing in New Zealand businesses", BusinessNZ chief Kirk Hope said. It would immediately become a diplomatic issue, as affected companies lawyer up.
Currently, Sri Lanka produces no oil and is dependent on imports.
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An Oil rig sits in front of Mt Taranaki between Stratford and Midhurst. "We are disappointed that onshore Taranaki, where communities have to deal with ongoing fracking and exploration, is exempt from the ban, and that existing offshore exploration contracts will remain", he said.
Given five major offshore oil and gas companies have relinquished their New Zealand permits during the past two years and left New Zealand, the decision appears unlikely to have any short-term effects. Forest and Bird CEO Kevin Hague, a former Green MP, said he wanted the temporary breathing space of the end of offshore block offers made permanent by changing the Crown Minerals Act to dismantle the block offer process.
This will feel good for environmental activists, but unless there are more significant moves to dampen demand, all this will do will be to grant more geopolitical power to countries in the Middle East and of the likes of Venezuela, holder of the world's largest oil reserves. It certainly has nothing to do with climate change.
In Europe she will meet the President of France Emmanuel Macron in Paris, German Chancellor Angela Merkel in Berlin and British Prime Minister Theresa May. Over the past seven years, hundreds of thousands of people have marched, petitioned, and blockaded in opposition to oil exploration.
Some will continue to operate in New Zealand for years to come.
The Labour-led coalition government, which includes the Greens Party, warned last month that changes to the oil and gas exploration framework were being considered.
The country was sending a clear message that it was prepared to leave oil and gas production behind, and the tax revenues and jobs that go with it, he added.