New Zealand has invested $21 million in two offshore gas projects to enhance domestic gas production. This news was announced by the Minister of Resources, Shane Jones, and the Minister of Finance, Chris Bishop, and the investment is made through the Gas Security Fund (GSF), a government investment facility worth $113 million.
Offshore Gas Projects
One of the projects considered for this round of funding is the "Kaharo" offshore gas exploration project, which will be executed by the company Enzed Energy in the Taranaki basin. This project will receive $12.19 million for a limited financial agreement, with a total cost of $40.2 million. Enzed Energy is seeking to secure the remaining $28.1 million from other investors. The initial goal of this project is to explore the Kaharo field to determine the presence of commercially recoverable gas.
Read more: Persian Gulf Waterway Management: Warning to Vessels Navigating Unverified Routes
Gas Exploration License
Enzed Energy received a gas exploration license from New Zealand in July. This license, valid for 12 years, is the first exploration rights granted to the country since the lifting of the oil and gas exploration ban in 2018. The license covers 546 square kilometers in the Taranaki basin, located east of the Kupe production field.
Minister Shane Jones stated: "This project is seeking 182 petajoules (pj) of additional gas reserves in the Kaharo license, which is equivalent to nearly 25% of New Zealand's proven and probable gas reserves as of January 2026." According to government data, New Zealand's proven and probable natural gas reserves as of January 1, 2026, are 731 pj, which represents a 23% decrease from the previous year.
The Ministry of Business emphasized that this is the lowest level of natural gas reserves recorded in the past 20 years. Jones added that projects like Kaharo could provide a new source for domestic gas supply and help meet New Zealand's energy needs in the coming years.
Another project that will benefit from this funding is led by the oil services company "Schlumberger New Zealand" (SLB). This company has received $8.2 million to provide free access to its seismic data for two years to the industry. Over the years, Schlumberger has compiled a comprehensive seismic library with over 28,000 square kilometers of 3D data and 5,000 square kilometers of 2D seismic coverage in the Taranaki basins and eastern coasts.
As part of this funding, the government has requested the consolidation of scattered subsurface exploration information into a basin-scale dataset with AI capabilities presented in an industry-standard format.
Read more: International Sanctions Alter Tanker Routes to China · Hafnia Makes $300 Million New Investment
