Delay in Shell's sale plan

The sale of $400 million of Shell New Zealand's oil and gas assets has been delayed until the New Year.

Shell Petroleum managing director Lloyd Taylor said this month two buyers had been found for the firm's onshore oil and gas fields of McKee, Mangahewa, Kaimiro and Ngatoro.

He said at the time the sale was expected to be completed by Christmas.

The Commerce Commission requires Shell to divest the assets as part of the deal this year allowing the company to buy Fletcher Energy.



But Mr Taylor said the sale process had been delayed and would not be completed for weeks.

"It is a little disappointing," he said.

"But we are philosophical and remain confident the deal will be finalised by mid-January.

"Basically, we underestimated the time taken to get necessary approvals but nothing fundamentally is at issue and there are no serious problems."

Todd Energy is tipped as one of two buyers in negotiations with Shell, and speculation is that the second buyer is German energy giant Preussag Energie.

Shell sold $133 million worth of assets to Swift Energy this month.

- NZPA