Shells off­loads NZ as­sets

The Australian Energy Review - - NEWS - EL­IZ­A­BETH FABRI

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.

Im­age: Royal Dutch Shell.

Maui op­er­a­tion in New Zealand.

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