Horizon can buy 16% stake in Taranaki oil fields

WELLINGTON: The Overseas Investment Office has given ASXlisted Horizon Oil International approval to buy a 16% stake in the Maari and Manaia oil fields and joint venture assets off the Taranaki coast from Todd Corp.

Last November, Sydneybased Horizon signed an agreement with Todd to buy the stake in the fields, subject to working capital and purchase price adjustments for $US17.6 million. Horizon’s stake in the venture will now be 26%, with operator OMV New Zealand holding 69% and Cue Energy with a 5% stake.

According to the OIO, it was satisfied the individuals who will control the investment have the relevant business experience and acumen and are of good character.

The applicant had also demonstrated financial commitment to the investment, it said.

Todd’s exit from Maari is the latest change in the family’s energy portfolio.

In April last year, Todd Energy bought out its joint venture partner in the Kapuni onshore oil and gas field, while selling its 50% share in the Shell Todd Oil Services entity which managed oil and gas brought ashore from the Maui and Pohokura fields, offshore Taranaki.

A month later, Todd’s Nova Energy retail unit sold its lpg business to Genesis Energy.

The OIO said the total gross asset value was $150 million and ‘‘the investment relates to assets that exceed $100 million and for which consideration in excess of $100 million has been paid.’’

Horizon’s ASXlist shares last traded at A13c. — BusinessDesk