High Court judge Justice John Wild recently ruled that current Maui operator Shell Todd Oil Services (STOS) was operator for the life of the field.
A Shell NZ spokesperson today confirmed to EnergyReview.net that Shell NZ had decided to appeal and papers would probably be filed with the Court of Appeal in Wellington next week.
Shell NZ disagreed with some aspects of the judgment, particularly the court’s interpretation of the core terms of the 2002 heads of agreement between Shell and Todd Petroleum Mining.
The 2002 HOA had updated the original 1995 Shell-BP-Todd joint venture agreement that specified all New Zealand exploration and production activities would be done through an unincorporated organisation owned by the parties but holding no equity in any licences.
Late last month, Justice Wild granted Todd a permanent injunction preventing directors of STOS – equally owned by Todd and Shell but with Shell having a casting vote – from voting for STOS to resign as Maui operator and be replaced by Shell.
Several months ago, Shell won a similar court case – this time over the operatorship of the Pohokura field – allowing it to remove STOS as operator and to take control of that near-shore gas-condensate field. Todd had also opposed that move.
Documents produced during the latest High Court squabble between Shell and Todd revealed that Shell wanted to re-organise its New Zealand operations in preparation for a possible sale after the Pohokura project comes onstream late this year.
Justice Wild said Shell feared a $US100 million ($A135 million) loss in the value of its New Zealand oil and gas assets if it did not take the operator’s role at its major Taranaki fields.
The Shell spokesperson said that the company had, in New Plymouth yesterday, briefed the 400 or so STOS staff on Shell’s current commitment to New Zealand and its exploration and production activities.
