Gas and oil exploration off the East Coast could provide a major economic boost for the Western Bay.
Brazil's state oil company Petrobras has been given the first petroleum exploration permit for the Raukumara Basin off the East Coast.
Tauranga Mayor Stuart Crosby said if successful, the project could have a positive
spin-off for the Bay.
"It's an exciting opportunity for the whole of the Bay of Plenty, and hopefully, if there are some significant finds as a result of the drilling, it could create a major economic boost for the greater Bay of Plenty.
"I think we will all be watching very closely, and hopefully they have some success."
Tauranga Chamber of Commerce chief executive Max Mason told Radio New Zealand the exploration was good news for the whole region.
The type of jobs created would not just be low wage, he said, but high-tech jobs which were what the region needed.
Energy and Resources Minister Gerry Brownlee said it was exciting the company - among the top 10 oil and gas companies in the world - was coming to New Zealand. "Petrobras is an international giant in this industry and a world leader in development of offshore drilling technology and production," he said. "Given Petrobras' expertise, and financial and technical pedigree, this is an exciting step into areas of New Zealand until now unexplored."
The exploration permit covers 12,333sq km where seismic data and modelling work showed the basin had geology capable of trapping hydrocarbons in commercial quantities.
Mr Brownlee said the Government would do all it could to ensure adequate environmental protection before future deep-sea drilling, following the oil spill in the Gulf of Mexico.
The Green Party was calling on the Government to put offshore oil exploration, particularly in the Great South Basin, on hold until the exact cause of the catastrophe in the Gulf is identified, and ways are found to prevent the same thing happening elsewhere.
