Shell to sell stake in Kapuni gas field in New Zealand to JV partner Todd Energy
07 April 2017
British–Dutch multinational oil and gas company Royal Dutch Shell yesterday struck a deal to sell its stake in the Kapuni gas field in New Zealand to joint venture partner Todd Energy for an undisclosed sum.
The sale comes over a year after Shell announced that it would review its assets in New Zealand in order to focus on large growth opportunities in deepwater and integrated gas projects.
Shell will take full control of a joint venture company, STOS, that operates two other gas ventures in New Zealand, and then transfer the operatorship of Kapuni gas field to Todd Energy and buy Todd's 50 per cent stake in operating company Shell Todd Oil Services.
Shell's New Zealand chairman, Rob Jager, said that there is no timeline for a sale of the remaining assets, which include an 84-per cent interest in the Maui field and a 48-per cent stake in the Pohokura field.
"Shell will continue to explore divestment options for its remaining assets and interests in New Zealand," the company said. "This is consistent with the Shell Group's approach to re-shaping its global portfolio in line with its long-term strategy."
Kapuni was discovered in 1959 and was New Zealand's first commercial onshore natural-gas field. It went into full production in 1969.
The Kapuni field is located near Mount Taranaki some 65 kilometres south of New Plymouth.
The reservoir covers an area of about 10km by 2.5km with the main accumulation in gaseous form held in sandstone at depths between 3400 and 3600 meters.
Kapuni facilities currently consist of 16 wells located on nine well sites, which feed the gas and condensate via pipelines to the centrally-located Kapuni Production Station.