NZ First has proposed spending $1 billion on oil and gas exploration in New Zealand's offshore basins, including the east coast of the South Island and the Taranaki Basin. The plan aims to test prospects that commercial explorers have abandoned due to high risk and low success rates. Industry experts say the money could fund a few deep-water wells, each costing at least $100 million, with a typical success rate of about one in 10. Previous exploration in the Canterbury Basin and Great South Basin has resulted in dry wells, and the last South Island exploration permit was surrendered in 2021. The Barque prospect, estimated to hold up to 11 trillion cubic feet of gas and 500 million barrels of oil, remains untested. The proposal raises questions about government spending on fossil fuel exploration versus investing in renewable energy and grid decarbonization.
