Shell has joined the search for oil in the Great South Basin and will take a 50% share in two exploration permit areas off the Otago coast, as it has entered the new joint-venture.

The OMV consortium stated that Shell had joined it as a major partner and has given one of its exploration consents back to the Crown so that the other two could be focused on.

These will be mapped in 3-D and once mapping is done, shell will look after the administration of the project.

OMV New Zealand Managing Director Peter Zellinger and Shell New Zealand Chairman Robert Jager did not comment about the impact of the decision on the Invercargill's hopes.

Mr. Zellinger said that the next move will be drilling and then only the development of operations will take place on the basis of the most productive areas.

Mr. Zellinger said that the Southlanders should not expect immediate payoffs due to Shell's investment. "Be realistic. It's not a gold rush. It is a very careful exploration process ... don't have the wrong expectation [that] everything will change", Zellinger said.

The Invercargill City Council, the Chamber of Commerce and the Southland Energy Consortium have been hoping for an economic boom due to the oil and gas exploration.