- Hon Shane Jones
A new production well in the Pohokura gas-condensate field is a technical feat and demonstrates the potential for further development of mature fields, Resources Minister Shane Jones says.
Mr Jones visited the Pohokura Production Station in Taranaki this morning to see the new gas well turned on.
The Pohokura Onshore Well Number 5 (POW-05) is anticipated to deliver about 4 petajoules of gas per annum into New Zealand's energy network under a mining permit held by a joint venture between operator OMV and Todd Energy.
"There are technical complexities with locating and drilling producing targets in a field as well-developed as Pohokura and this achievement is a credit to OMV's extensive experience and expertise working with New Zealand's geology," Mr Jones says.
The Pohokura field is located offshore, and POW-05 has become one of New Zealand's longest well, drilled down 3km then out almost 8km laterally from onshore using Todd Energy's Big Ben rig.
"Natural gas is critical to delivering a secure and affordable supply of energy for New Zealanders. We need continued and steadfast investment in further exploration and development to extend the life of our gas fields and OMV and Todd Energy have shown there is still great potential for production."
The new gas supply from POW-05 is expected to make a material contribution to shoring up energy security this winter.
"Collectively, we keenly felt the pain of our limited gas supply last winter when generation from our renewable energy sources was at capacity and wholesale energy prices skyrocketed as a result.
"The Coalition Government moved quickly to approve a raft of actions to address the serious risk to security and affordability, and we aren't taking our foot off the pedal.
"My priority as Minister for Resources is progressing the Crown Minerals Amendment Bill which reverses the ban on new oil and gas exploration beyond onshore Taranaki and shows this Government's intent to reinvigorate investment in petroleum exploration by providing the certainty needed to get the sector to work. I expect to deliver this in the coming months.
"It's a signal to industry both here and overseas that New Zealand is not only open for business but doing business."
Positive signs are also being seen elsewhere in the petroleum sector.
"Greymouth Petroleum, a New Zealand-owned gas producer based in Taranaki, has undertaken a significant drilling campaign in 2024 with great success. The company has reported a significant gas find in the Turangi field, with strong gas flows and oil condensate. Drilling at a number of high impact prospects is also planned for 2025," Mr Jones says.
"These are signs of revived confidence in New Zealand and our prospects, and they should be celebrated for what they are - steps towards shoring up our energy security and affordability."
