Company chief executive Dave Bennett told EnergyReview.Net from Wellington today that the high court action could take several weeks to consider Greymouth's claims and Indo-Pacific's counterclaims regarding the operation of the small onshore Taranaki Goldie oil field.
"This cuts to the core of established joint venture operating practice, not only in New Zealand but in much of the rest of the world, and should be closely followed by oil men in several countries."
At the core of the claims and counter-claims are differing interpretations of Greymouth's purchase last year of the majority Ngatoro stake from Shell New Zealand and Indo-Pacific's "sole risk" Goldie venture.
Greymouth is claiming an entitlement to 92.2564% of production from Goldie, instead of the 59.57% Ngatoro stake it bought from Shell, and the right to sell Goldie gas.
Greymouth had also been trying to take delivery of all gas produced from the Ngatoro mining licence, not just from the Goldie pool situated within PMP 38148. Greymouth is also claiming about $40 million in damages because Indo-Pacific is not operating the field "optimally".
Bennett also said testing of the Tabla-1 well and the Ngatoro-A waterflood project, both within PMP 38148, remained on hold due to Greymouth's continuing veto on activity.
