Energy Minister Gerry Brownlee has announced Petrobras, one of the world's largest oil companies, has been awarded exploration rights for oil and gas on the east coast of the North Island.

The five-year permit, covers more than 12,000 square kilometers, and is the first in the Raukumara Basin area.

Brownlee says attracting Petrobras is a major coup, as the company has annual revenues of more than $118 billion US dollars.