Shells offloads NZ assets
ROYAL Dutch Shell has agreed to sell its New Zealand assets to Austrian oil and gas company OMV for $US578 million.
The sale, in line with the company’s strategy of divesting $US30 billion in assets by the end of 2018 to simplify its upstream portfolio, comprises eight Shell NZ entities, including the Maui, Pohokura and the Tank Farm operations, of which OMZ is already a co-owner.
Shell’s interest in the Great South Basin venture, which includes a drilling commitment of about $US50 million, will also be sold in a separate transaction.
Shell Integrated Gas and New Energies director Maarten Wetselaar said the sale was another step towards reshaping and deepening Shell’s financial resilience and competitiveness.
“We are proud of having worked in New Zealand for more than 100 years,” Mr Wetselaar said.
“Our customers, our neighbours, the regulator and partners have been a critical part of this journey and integral to our successes, I wish them all well.”
Shell Companies in New Zealand chair Rob Jager said the business will continue to run as it is now, until the deal was complete.
“We have two high priorities over this transition period: to continue to run our assets in a safe and reliable manner and care for our people,” Mr Jager said.
The divestment follows a two year strategic review of Shell’s interest in New Zealand, and the sale of the 60-year-old Kapuni oil and gas field in April last year to its joint venture partner Todd Energy.
The company expected to finalise the sale of its New Zealand assets by Q4 this year.
Maui operation in New Zealand.