Shell gets Fletcher Energy in second attempt

9:55 AM

The Commerce Commission will allow the multinational oil company Shell to buy Fletcher Energy for $4.6 billion.

The decision reverses the commission's earlier position that the deal would give Shell market dominance in some areas.

Commission chairman John Belgrave says the clearance is subject to Shell selling off a range of assets it and Fletcher Energy owns.

Those assets include Fletcher Energy's interests in the Kupe field, Challenge Petroleum, New Zealand Refining, and several other gas and oil fields.

Mr Belgrave says the sale was initially turned down because the Commission was concerned Shell would be dominant in current gas production, gas production after 2009, and production of LPG.

Shell says it is delighted by the ruling and says the purchase will be good for the oil industry in New Zealand.

Fletcher Energy shares are currently trading at $9.29, up 79 cents.

- IRN