Methanex withdraws court action over Maui

By NZPA

Thursday 20th June 2002

Methanex has withdrawn a court injunction seeking to delay a determination on how long the Maui gas field will last.

Instead, the parties involved have agreed to appoint an independent expert, who will determine the reserves remaining in the offshore Taranaki field.

Maui is New Zealand's largest gas field and its reserves are being redefined because its gas is picked to run out in 2007 -- two years ahead of earlier forecasts.

In May Methanex sought an injunction to delay the process, claiming that not enough information was provided for the methanol manufacturer to form a view on the amount of recoverable gas remaining in the Maui field.

Natural Gas Corporation said in a statement today the parties involved had reached the agreement, and as a result Methanex NZ withdrew legal proceedings against the field owner, Maui Development Limited (MDL) and the Crown, which were due to be heard in the High Court in June and August.

"The Maui contract provides for the appointment of an independent expert where the parties cannot agree on the remaining volume of gas reserves," NGC said.

In addition to deciding the level of remaining gas reserves, the independent expert will also consider any issues relating to the adequacy of information provided by MDL.

NGC chief executive Phil James welcomed the development, which meant the redetermination would proceed in a timely fashion.

It is still possible for the parties to agree on the remaining reserves before a decision is made by the independent expert, expected within four months of his or her appointment.

Maui is 87.5 percent owned by Royal Dutch/Shell Group and 12.5 percent by private investor Todd Petroleum Mining Co Ltd.

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