Todd buys Shell fields

By Phil Boeyen, ShareChat Business News Editor

Monday 4th March 2002

Oil company Shell is continuing with its divestment of former Fletcher Energy assets, agreeing to sell the McKee and Mangahewa oil and gas fields to Todd Energy.

The sale of the fields is in line with the undertaking given by the company to the Commerce Commission at the time it acquired Fletcher Challenge Energy early last year.

The sale price has not been disclosed.

Shell's New Zealand MD, Dr Lloyd Taylor, says the deal with Todd completes the sale of all the onshore assets to be sold with the exception of half of Shell's holding in the Ngatoro field.

"An announcement on this final onshore divestment will be made shortly," he says.

Last week the company announced an agreement with Greymouth Petroleum for the purchase of the Kaimiro field and half of Shell's holding in the Ngatoro field. The sale of the four TAWN fields to Swift Energy was agreed last December.

Shell has also agreed to sell to Todd Energy a 3.7% share in the offshore Pohokura field, supplementing Todd's existing 15% holding in the undeveloped oil and gas field.

Divestments still to be completed are the sale of 22.5% of the Kupe field Genesis Power and 10% of Maui as well as two small gas wholesaling companies.

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