New boss of Shell Todd Oil launches review

A major review of Taranaki's largest energy company is about to begin, as it faces up to the depletion of the Maui gasfield.

Shell Todd Oil Services' 400-plus staff have been told the review will focus on how the company can improve cost-effectiveness for the joint-venture energy companies it works for.

The new general manager, Paul Zealand, said it was too early to speculate whether it would result in job losses in Taranaki.

But he admitted that the review would create uncertainty among staff so management had given a commitment to communicate progress to employees as openly as possible.

The Englishman, who replaces retired general manager Chris Beath, has taken over at a time of considerable speculation over the future of the company as the Maui field dwindles.

But, in his first interview, Zealand said he was not there to wield any great axe.

"I haven't come here to shut Stos [Shell Todd Oil Services] down. But I am here to help take the company to its next level of performance. Stos has an excellent performance record, but now the energy scene is undergoing rapid change - and we need to keep up with that."

Zealand said the company needed to continue to reduce the cost of its base business - particularly in relation to Maui, because if those base costs were down, it would be more acceptable to the field's owners to invest in projects aimed at extending its life.

A second major part of the review would investigate ways to increase the company's activities.

"The energy industry here isn't dead, it's just changing," Zealand said. "There are huge opportunities here, as long as the company can deliver the right value propositions for our owners.

"There's further potential out at McKee and Mangahewa, opportunities to extract more gas from the Kapuni field, potential to discover further pockets of gas at Maui, and then of course there is the Pohokura discovery which is due for development.

"And there's exploration potential as well, including out at the Western Platform north of Maui, where we are committed to drill next year."

- NZPA