Shell Sells Stake in NZ Gas Field

Shell has sold its 50% stake in Kapuni gas field in New Zealand to local firm Todd Energy for an undisclosed amount, it said April 6. Todd Energy has been in the Kapuni joint venture since the venture’s formation in 1955.

Shell will first acquire the remaining 50% of the joint venture operating company, STOS, from Todd Energy thereby owning 100% of the shareholding of STOS upon completion of the deal. Operatorship of the Kapuni field will then transfer to Todd upon completion.

Kapuni was New Zealand’s first commercial onshore natural gas field. The reservoir covers an area of about 10km by 2.5km with the main accumulation in gaseous form held in sandstone at depths between 3,400 and 3,600 metres. The facilities currently consist of 20 wells, across nine locations and a production station, according to Shell.

Shell said the divestment to Todd is likely to take some months to complete, adding it will continue to explore divestment options for its remaining assets and interests in New Zealand.

On April 5, Shell announced the conditional sale of its Liquefied Petroleum Gas business in Hong Kong and Macau to Ireland's DCC Energy for a total enterprise value of US$ 150.3mn (HK$ 1,165mn), as part of the super-major's ongoing plan to divest $30bn of assets between 2016 and 2018.

DCC which distributes LPG, oil products and some gas in Europe also said that its CEO since May 2008, Tommy Breen, will retire in mid-May and be succeeded by Donal Murphy, executive director and managing director of DCC Energy, DCC’s largest division.

Shardul Sharma