The New Zealand energy heavyweights last year fought a protracted battle over operatorship of the $US600 million ($A780 million) near-shore Taranaki Pohokura gas-condensate project. This week, they are slugging it out again over the more southern and more mature Maui field.
The High Court last December rejected Todd Energy’s appeal against Shell New Zealand taking over from Shell Todd Oil Services as Pohokura operator, and the global major started operating the Pohokura project from last month. First commercial Pohokura gas is expected ashore later this year.
This week’s court action is essentially a continuation of the action that Shell initiated last year, when its New Zealand EP commercial manager Ajit Bansal said Shell believed it could add substantial value to its major New Zealand oil and gas assets by moving away from the STOS service company structure.
“Replacing STOS with direct operation by one of the field participants would align operations with common global practice in the industry. Shell is convinced that by simplifying the operating company arrangements, it would bring advantage to all joint venture owners and staff,” Bansal said at that time.
STOS operates Maui, the onshore Taranaki McKee oil and the Kapuni and Mangahewa gas fields. However, Todd Energy is due to take over the McKee-Mangahewa fields next month.
The changeover from STOS to Shell NZ as Pohokura operator was a relatively “seamless” affair, with all STOS Pohokura staff now contracted to Shell. A similar thing is expected for the McKee-Mangahewa changeover and that of Maui, if the high court rules in favour of Shell.
If Shell wins the Maui battle, STOS will then be left operating only Kapuni, though Todd could take over that field, too.
These court joustings effectively signal the end of the 51-year relationship Shell and Todd have had through STOS – a 50:50 joint venture organisation holding no equity in any licence.
Shell NZ owns 82.75% of Maui, 48% of Pohukura and 50% of Kapuni. Todd holds 6.25% of Maui, 26% of Pohokura, 50% of Kapuni and 100% of McKee-Mangahewa. Austrian firm OMV owns 10% of Maui and 26% of Pohokura.
