has sold its New Zealand onshore oil and gas fields to its local joint-venture partner in a step that could see it divest other upstream assets in the country, the US energy giant said.
Todd Energy will purchase Shell’s Kapuni assets, while Shell will acquire the remaining 50 per cent in the JV operating company Shell Todd Oil Services (STOS), Shell said in a statement without disclosing the value of the deal.
STOS has since 1955 managed Maui and Pohokura fields, offshore Taranaki.
“This will simplify Shell’s operational structure in preparation for any possible portfolio changes on the remaining assets,” Rob Jager, Shell NZ chairman said.
Shell has been shrinking its global portfolio as the economics of the industry has changed to favour onshore and fracking operations rather than deep-sea exploration and production and to assist its US$50 billion purchase in 2016 of UK-based energy company BG.
Shell said it will continue to explore divestment options for its remaining assets and interests in New Zealand, a move it said is consistent with the group’s approach to re-shaping its global portfolio in line with its long-term strategy.
The sale and purchase agreement is subject to certain conditions which include normal regulatory approvals and is likely to take some months to complete. Operatorship of the Kapuni field will transfer to Todd upon completion, Shell said.
As part of the deal, about 50 employees working on Kapuni may have their positions and their employment transferred to Kapuni Services Limited (KSL), which upon completion will be owned by Todd Energy.
“At this time of change, there are two high priorities - continuing to run our assets in a safe and reliable manner and care for our people,” the statement said.