Austrian company acquires Shell's upstream business in NZ

OMV, an international integrated oil and gas company based in Vienna, has agreed to acquire Shell’s upstream business in New Zealand comprising joint venture interests in Pohokura (48%), the largest gas producing field in New Zealand, and Maui (83.75%) as well as related infrastructure for production, storage and transportation.

OMV is an existing partner in the acquired assets (OMV’s current stakes: 26% in Pohokura and 10% in Maui) and intends to assume operatorship in both joint ventures.

The economic effective date of the transaction is 1 January 2018. Average production of the acquired assets in the first two months of 2018 was around 31,000 boe/d.

“This acquisition is an important step to develop Australasia into a core region in line with our new strategy,” said Rainer Seele, chairman of the OMV executive board and CEO.

OMV said that the acquisition builds on its operatorship capabilities in New Zealand and adds up to 100 million boe of recoverable resources.

The purchase price is US$578 million and the transaction is likely to be completed in 2018. It is subject to conditions, including New Zealand Commerce Act and Overseas Investment approvals.

In parallel to the acquisition of the interests in Pohokura and Maui, OMV has also acquired Shell’s 60.98% interest in the Great South Basin exploration block (GSB). The transfer of GSB is immediately effective and increased OMV’s stake in GSB to 82.93%.

Image: teara.govt.nz