Shell slides away from Maui, Maari holdings

Shell New Zealand has sold 10 per cent of New Zealand's main oil and gas field, Maui, to the New Zealand branch of Austrian oil and gas company OMV.

Shell's stake in Maui will be reduced to 77.5 per cent, with Todd Petroleum Mining holding 12.5 per cent and OMV the rest.

The oil field is expected to run out of commercial supplies in 2007.

Shell will also sell to OMV its 49 per cent joint venture share in the Maari exploration permit and potential oilfield development.

Both sales were subject to regulatory, joint venture and gas contract approval, Shell NZ chairman Lloyd Taylor said.

The sale of the Maui interest completed the disposal of the physical assets required by the Commerce Commission when Shell acquired Fletcher Challenge Energy in March last year.

He said the sale of Shell's interest in the undeveloped Maari field was part of a portfolio rationalisation.

"We have decided to divest our 49 per cent ownership of Maari to focus on our more material gas business.

"The divestment of our share of this potential oil development to an independent company of OMV's size maximises the likelihood that this development will proceed quickly and efficiently."

- NZPA