Mr Coffey led a protest of about 300 people in Tauranga on Saturday to the offices of National MP and Minister of Energy and Resources Simon Bridges to protest against the decision.
Mr Coffey said a media "beat-up" was behind the accusations and that he wanted to set the record straight. "My priority and Labour's priority is to absolutely protect the last 55 Maui's dolphins. What was twisted on the news was any future oil and gas exploration has to be proven to be safe for the dolphins or it will not be allowed."
Mr Coffey said he had spoken to Mr Cunliffe about the situation and said his leader assured him this was the case.
Mr Coffey said his party's stance on the issue was clear.
"Labour will protect the critically endangered Maui's dolphin and has a strong record on protecting the Maui's dolphin.
"It was Labour that first introduced the dolphin sanctuary and subsequent set-net ban.
"While we are not opposed in principle to oil exploration, Labour would require the industry to have to prove it will cause no harm to the Maui's dolphin before any new consents would be granted."
Mr Coffey said the party was not opposed to responsible drilling where that was already in place.