Shell New Zealand Sells Interest in Kupe Field

Shell New Zealand has sold its remaining 22.5 percent interest in the Kupe oil and gas field offshore New Zealand for an undisclosed amount. NZ state-owned electricity company Genesis Power bought 20 percent, increasing its holding to 70 percent, and New Zealand Oil and Gas purchased the other 2.5 percent. Shell NZ chairman Lloyd Taylor also confirmed the sale of Shell's remaining holding in the Ngatoro field to privately-owned Greymouth Petroleum, which concludes the sale of the company's near 60 percent stake.

NZ competition regulator the Commerce Commission required Shell to divest various on and offshore energy assets when it bought Fletcher Challenge Energy last year. Shell has only 10 percent of the Maui field and two small gas wholesaling companies left to sell. Genesis chief executive Murray Jackson said Kupe had been assessed as having 260 petajoules of proven (P50) gas, 15 million barrels of oil and 300,000 tons of LPG. "As an electricity gas retailer, Genesis is pleased to have a significant investment in upstream gas supply, particularly as the Maui field is subject to re-determination," he said. "Kupe will provide long term certainty over gas supplies," he said.

Partners in the Kupe oil and gas field are now Genesis with 70%, New Zealand Oil and Gas with 19% and the Government with the remaining 11%.