Petrobras has decided not to proceed with permits it holds for deepwater prospecting off the North Island's east coast.
The Brazilian company was awarded a permit in 2010 to explore 12,000 square kilometres in the Raukumara Basin for gas and oil.
Asked today if he was disappointed Petrobras was not proceeding, Finance Minister Bill English said other companies were interested and committed to oil and gas exploration.
"The Government has invested a bit of time and money in making sure it's attractive, exploration is attractive, the companies are always making their decision in the context of now some quite big shifts in world energy markets with the extensive shale gas finds in the US for instance," English said.
Local iwi and green groups fought a high profile campaign - even taking to the seas - in a bid to stop Petrobras's exploration.
Gisborne District Councillor Manu Caddie said he was not surprised the level of public opposition to deep sea drilling got Petrobras worried.
He said the idea to prospect for oil in the area was crazy from the outset as it had abundant marine life and locals used it as a food resource.
Not surprisingly, the Greens' leading social media presence is gloating:
Clearly, we do not share Gareth Hughes' delight in this announcement. New Zealand sits on some rich mineral, oil and gas deposits. Yet every attempt to extract them safely and create greater wealth and more jobs is resisted by the Greens. When the MV Rena ran aground on Astrolabe Reef last year, Hughes whipped up a frenzy around it. He opportunistically linked the stranding of the Rena to a possible leak from deep-sea drilling, even when there is a world of difference between the two events.
Now Petrobras has pulled the pin on an investment which could have been worth hundreds of millions of dollars to New Zealand, and which could have provided hundreds of jobs on the East Coast, one of New Zealand's more impoverished regions. And the Greens are reportedly over the moon; whilst all the while they claim to represent the poor, and complain about growing unemployment.
Another opportunity to grow the New Zealand economy has gone begging. And on this occasion, far from being part of the solution, Green Party policies and politics are a part of the problem.