A Dunedin grandmother is elated offshore oil exploration is being pulled out of Otago

New Zealand Oil and Gas has torn up its permit for the Clipper area near Oamaru, estimated to contain 1.5 billion barrels of light oil and huge gas reserves.

Oil Free Otago's Rosemary Penwarden says no one wants an oil spill in the Southern Ocean, as it's home to a third of the world's albatross population.

She says this is a win for the climate ... and her grandchildren.

Penwarden says she became a grandma in 2011, and has worked since then against the oil project so her grandkids have a better future.