Contact and Vector told the New Zealand Exchange last Friday afternoon that the commission had informed them of Todd Energy’s request for a “cease and desist order” covering aspects of the sale of ROFR gas from the Maui field.
Vector said the points raised by Todd Energy were well-known to the ROFR contract parties, which included the Government, and to the commission. Vector also said it was confident its ROFR contracts and entitlements were appropriate.
“Vector looks forward to providing all relevant information to the commission and working through the process,” Vector said.
Contact communications manager Jonathan Hill told PetroleumNews.net this morning that cease and desist actions were rare in New Zealand, particularly in the energy sector.
“Contact remains confident of its contractual entitlements under the ROFR process and looks forward to this request being speedily resolved,” he said.
Commission spokesperson Jackie Martin declined to comment on the matter and PNN could not contact Todd Energy managing director Richard Tweedie for comment this morning.
Late last month, Contact and Vector secured 275 petajoules of additional Maui gas to ensure adequate fuel supplies for Contact’s existing gas-fired stations and for Vector’s gas supply agreements through to 2014.
Contact, having the right to acquire up to 61.63% of any market-priced ROFR gas offered, secured 170PJ of gas, while Vector subsidiary NGC secured 105PJ. First deliveries of ROFR gas are expected to start next April.
Industry sources say this is the latest of many attempts by Todd Energy to effectively control the last years of life of the Maui field, which is owned by Shell Exploration New Zealand (82.75%), Todd Energy (6.25%), and Austrian firm OMV (10%).
Earlier this year, Todd successfully prevented Shell taking over as Maui field operator from Shell Todd Oil Services – an unincorporated organisation jointly owned by Shell and Todd with no equity in Maui.
The High Court upheld Todd’s injunction preventing Shell using its casting vote to remove STOS as operator, but Shell is appealing that decision.
