Preussag checks out oilfields

Pohokura partner Preussag Energie staff have toured Fletcher Challenge Energy's (FCE) Taranaki fields ahead of bidding for some of the promised Shell divestments.

Preussag staff from Germany and its newly established Wellington office spent Saturday and Sunday touring various FCE assets, including the McKee and Waihapa production stations.

The Preussag visit comes hard on the heels of a similar tour last month by fellow Pohokura partner Todd Energy and signals an imminent announcement by the third Pohokura partner, Shell, regarding the sale of some of its $600 million worth of divestments.

Industry commentators say Preussag Energie - part of the giant German Preussag industrial group - has big plans for New Zealand and is keen to become a major gas player here, as it is in Europe.

But to achieve this Preussag Energie will need to substantially increase its New Zealand assets from its sole Kiwi interest, a 33 per cent stake in the Pohokura project.

Shell, Todd and Preussag are working together on the $400 million development of the giant Pohokura gas field off north Taranaki.

It is known Preussag wants the 3.67 per cent of Pohokura that Shell has to sell to satisfy Commerce Commission concerns regarding market dominance. The German firm could link with Todd in acquiring more gas - notably the McKee and Mangahewa fields, 100 per cent FCE owned - to ensure adequate gas supplies for the future.

Shell's NZ chairman, Ed Johnson, has said Shell expects to complete its divestment programme before October.

- NZPA