New Zealand Oil & Gas (NZOG) has entered a US$25 million (NZ$35 million) contract with Mitsui E&P Australia to purchase Mitsui's 4% interest in the Kupe gas and light oil field, offshore New Zealand.
Kupe is offshore from South Taranaki in the Taranaki basin. It comprises an offshore remote-operated production platform, a pipeline and umbilical cable to shore, and an onshore production facility near Hawera. NZOG previously held 15% of Kupe, which it sold to Genesis Energy on 1 January 2017.
The deal adds 2.6 MMboe to NZOG reserves at 1 January 2017.
“The sale of our 15% interest to Genesis Energy in 2016 achieved a premium reflecting the asset’s strategic importance to Genesis and certain unique attributes,’ says NZOG Chief Executive Andrew Jefferies. “The acquisition of Mitsui's 4% interest provides ongoing income from an asset we see as high quality, in our heartland, and it is an appropriate investment in relation to our size and scale. It provides us with rights in the event of any further transactions in the joint venture, along with further prospectivity within the license area.”
The transaction remains subject to other consents and approvals (including regulatory approvals).
The effective date of the transaction is 1 January 2017.
Kupe is operated by Lattice Energy Resources (Kupe) Ltd., which together with its related companies has a 50% interest. Genesis Energy, through its subsidiaries, holds a 46% interest.
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