Shell sells up after 100 years in NZ
Shell New Zealand has been sold to Vienna-based oil and gas company OMV, parent company Royal Dutch Shell announced yesterday.
The sale marks the end of the multinational company’s association in New Zealand after more than 100 years.
As part of the deal, all Shell Taranaki Limited and Shell New Zealand staff will become part of OMV New Zealand, upon completion of the deal.
Royal Dutch Shell plc (Shell) said in a statement it had reached an agreement to sell its shares in Shell’s eight entities in New Zealand to OMV for $794m ($US578m).
The share sale included enitites Shell Exploration NZ Ltd (SENZL), Taranaki Offshore Petroleum Company of NZ (TOPCO), Energy Petroleum Taranaki Ltd (EPTL), Energy Petroleum Holdings Ltd (EPHL), Shell Taranaki Ltd, Energy Infrastructure Ltd (EIL), SNZ (2011) Ltd and Energy Petroleum Investments Ltd (EPIL).
Shell GSB Ltd (SGSBL) is also being sold in a separate transaction.
The sale followed a two-year strategic review of Shell’s interests in New Zealand and the sale of Shell’s interest in Kapuni in 2017, the statement said.
The agreement included Ma¯ ui, Pohokura and the Omata Tank Farms.
Shell also agreed to sell interest and operations in the Great South Basin venture, including an estimated $68.7m ($US50m) drilling programme.
OMV currently has a 26 per cent partnership in Pohokura and and 10 per cent in Maui.
The company said it intended to assume operatorship in both joint ventures.
The sale was consistent with the Shell Group strategy of divesting $42b ($US30b) of assets by the end of 2018, and in line with Shell’s drive to simplify the upstream portfolio and re-shape the company into a world class investment.
The sales and purchase agreement was subject to certain conditions which include normal regulatory approvals and is likely to be complete by fourth quarter this year.
Shell New Zealand country chairman Rob Jager said business would continue as normal 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.’’