Photo: Beach Energy
Attempts to get more gas from the offshore Kupe field have failed.
The partners in the field, which include Genesis Energy and NZ Oil and Gas, had been working to improve the flows from a further well, known as KS-9, that was drilled last year, but that had been unsuccessful.
Genesis said the joint venture's "intervention" efforts had been unable to produce sufficient flow to sustain operation of the well because of reservoir pressure level and liquid inflows.
It said further attempts to intervene might be tried at some stage.
As a result Genesis lowered its full year operating earnings forecast by $15-20 million to around $430m.
"Gas production across New Zealand continues to decline faster than expected and, as previously stated, less gas means more coal," chief executive Malcolm Johns said.
Genesis has used the Kupe gas to replace coal where possible and when necessary to power its Huntly power station, and has said gas has an important role in the energy transition with back up power during dry periods and intermittent wind and solar power supplies.
Earlier this month the company said it was resuming coal imports to replenish its stockpile because of dwindling gas supplies.
NZ Oil and Gas, which has a 4 percent interest in Kupe, said the result was "sub-par".
Chief executive Andrew Jefferies said NZOG would look at the results and other options to see how the field's production could be improved.
"It will continue to provide much-needed gas to New Zealand, providing cheap clean back-up power to the burgeoning fleet of less reliable renewables."