Shell sells Fletcher Energy assets to Greymouth Petroleum

Shell New Zealand today announced the sale of its interests in the Kaimiro and Ngatoro oil and gas fields in Taranaki to New Zealand-owned Greymouth Petroleum.

Greymouth Petroleum, headed by businessman Mark Dunphy, was the leading party in the Peak consortium that made a last gasp unsuccessful bid for Fletcher Energy last year.

Interests in the Kaimiro and Ngatoro fields were formerly owned by Fletcher Energy. Shell is required to sell part of the assets by March 31 following its $5 billion purchase of Fletcher Energy last March.

An industry player estimated the value of the sale at less than $50 million.

Shell New Zealand managing director Lloyd Taylor said Shell was delighted to support the development of another New Zealand energy player.

"With the addition of the former FCE interests in the Kaimiro and Ngatoro fields, Greymouth have acquired producing interests that will see them become a significant player in New Zealand's energy future," he said.

Final settlement for the sale of Kaimiro and Ngatoro interests will take place once regulatory formalities have been completed.

Shell expects in the near future to announce further divestments, in line with the conditions laid down by the Commerce Commission at the time Shell acquired Fletcher Energy.

It sold the "Tawn" fields (Tariki, Ahuroa, Waihapa and Ngaere fields) to Texas-based Swift Energy last month for about $130 million. Shell must also divest the McKee and Mangahewa fields and said recently it had two buyers lined up.

It is also selling interests in Maui (10 per cent), Pohokura (3 per cent) and Kupe (36 per cent).

- NZPA