In that deal, Todd Petroleum Mining farmed out half its 12.5% interest in the Maui field in a two-for-one deal - relatively common in the 1970s - to Shell US subsidiary Pecten International. Pecten financed 100% of Todd's Maui development costs for a 50% share of its petroleum revenue, though it did not take a direct interest in the Maui mining licence.

Now commentators are saying the behind-the-scenes maneuvering by Todd Energy regarding the commission's conditions on joint marketing and selling of Pohokura gas, may be a method of exerting pressure on Shell for more favourable finance terms.

"I can see it happening that way, very definitely. It would fit the pattern of creative financing that Todd is famous for," said one analyst.

While Shell - which already has its finance in place for the possible $NZ900 million project - might not repeat a two-for-one deal, it could help Todd by offering financial guarantees and alleviating any commission concerns regarding Todd's ability to raise the necessary capital expenditure.

Last week the commerce commission confirmed it had cleared Todd Pohokura Ltd to acquire from OMV an additional 9.8% interest in Petroleum Exploration, a joint venture between Shell Exploration NZ, Todd Petroleum Mining and OMV New Zealand. The clearance was a requirement of conditions recently announced as part of the commission's decision to authorise the joint selling and marketing of gas from the Pohokura field.

This additional equity will increase Todd's project funding requirements for the Pohokura development and see the new equity shares being Shell New Zealand 48%, Todd Energy 26% and OMV 26%.

EnergyReview.Net earlier this month predicted a disgruntled Todd Energy might appeal the commission's conditions on Pohokura gas joint marketing and a few days later the partners confirmed a High Court appeal was possible, on a joint or individual basis.

Their joint venture statement said the commission's June 2006 development deadline posed a "significant additional project risk for those parties seeking to secure project finance", which is believed to be only Todd. However, the statement also said any appeal process would have to be managed expeditiously and in parallel with other scheduled activities without compromising the mid-2006 deadline "to which all parties are committed".

Todd Energy chief executive Richard Tweedie has declined to comment on the issue and the partners have until the close of the Wellington High Court today to lodge any appeal.