The 2016 Block Offer petroleum tender that Energy and Resources Minister Simon Bridges launched includes a chunk of the Reinga-Northland Basin where Norwegian fuel company Statoil already holds two permits.
The tender will close in September with the outcome likely to be announced in December.
Mr Bridges said oil was a significant export earner in New Zealand and natural gas was vital to industry, electricity generation and used in more than 300,000 homes. But Greenpeace has accused the Government of "propping up a sunset industry" and making a "desperate, last-ditch bid to try to save their failing oil plans".
Mr Smith said the block release was another indication of the Government's failure to "lift a finger to curb greenhouse emissions" or live up to its commitment to the Paris Agreement, made at the 2015 United Nations Climate Change Conference.
The latest block offer includes four offshore areas, Reinga-Northland Basin, Taranaki Basin, Pegasus and East Coast Basins, and Great South-Canterbury Basin, and one onshore area in Taranaki. The combined size is 525,515sq km, including the 1062sq km onshore area, making it the largest area released since the annual block offer started in 2012.