New Gas Well at Pohokura Signals Strong Future for New Zealand Energy Security

The new well is expected to significantly bolster New Zealand’s energy supply, particularly as demand surges during the winter months.

The latest production well in the Pohokura gas-condensate field marks a major technical milestone and showcases the potential for further development of New Zealand’s mature energy fields, according to Resources Minister Shane Jones.

During his visit to the Pohokura Production Station in Taranaki, Minister Jones witnessed the activation of the Pohokura Onshore Well Number 5 (POW-05), a significant addition to the country’s energy network. The well is expected to deliver approximately 4 petajoules of natural gas annually under a mining permit held by the joint venture of OMV and Todd Energy.

“There are substantial technical challenges involved in drilling production wells in a mature field like Pohokura. The completion of POW-05 is a testament to OMV’s extensive experience and advanced expertise in working with New Zealand’s unique geological formations,” Minister Jones stated.

A Technological Achievement

The Pohokura field, situated offshore, has seen a remarkable feat with POW-05. Drilled to a depth of 3 km before extending nearly 8 km laterally from an onshore location, the well was completed using Todd Energy’s Big Ben rig, making it one of the longest of its kind in New Zealand.

“Natural gas remains an essential component of our energy mix, ensuring reliability and affordability for New Zealanders. Continued investment in exploration and development is crucial for extending the operational life of our gas fields. OMV and Todd Energy’s success with POW-05 highlights the untapped potential in our petroleum sector,” said Minister Jones.

The new well is expected to significantly bolster New Zealand’s energy supply, particularly as demand surges during the winter months.

Addressing Energy Security Concerns

Reflecting on the energy supply challenges of the previous winter, Minister Jones emphasized the government’s proactive approach in securing the country’s energy needs.

“We all experienced the strain of limited gas availability last winter, which led to soaring wholesale energy prices when renewable sources were operating at full capacity. Our Coalition Government swiftly implemented a series of measures to mitigate this risk, and we remain committed to maintaining energy security and affordability,” he said.

A key legislative priority for Minister Jones is advancing the Crown Minerals Amendment Bill, which seeks to lift the existing ban on new offshore oil and gas exploration beyond onshore Taranaki. The bill aims to provide regulatory certainty and stimulate investment in the petroleum sector.

“This legislation sends a clear message to both domestic and international investors—New Zealand is not just open for business, but actively fostering investment in its energy sector,” Minister Jones stated.

Renewed Confidence in Petroleum Exploration

The positive outlook for New Zealand’s petroleum industry extends beyond Pohokura. Greymouth Petroleum, a locally owned gas producer based in Taranaki, has reported a significant gas discovery in the Turangi field. The company’s drilling campaign in 2024 has yielded promising results, with strong gas flows and oil condensate findings. Looking ahead, Greymouth Petroleum has planned additional high-impact drilling prospects for 2025.

“These developments signal a renewed confidence in New Zealand’s petroleum industry and highlight the steps we are taking to secure our country’s energy future. Expanding domestic production reduces reliance on expensive imports and stabilizes energy prices,” Minister Jones concluded.

As New Zealand continues to balance renewable energy growth with traditional energy security, the successful expansion of the Pohokura field and the resurgence of petroleum exploration efforts underscore the importance of a diversified energy strategy.