OMV Buys Shell's NZ E&P Assets
Austrian OMV announced March 15 it has agreed to acquire Shell’s upstream business in New Zealand for $578mn. It comprises joint-venture interests in Pohokura (48%), the largest gas producing field in New Zealand, and Maui (83.75%) as well as related infrastructure for production, storage and transportation.
OMV is already a partner in the acquired assets with 26% stake in Pohokura and 10% in Maui and intends to assume operatorship in both joint ventures, it said.
The economic effective date of the transaction is January 1, 2018 and is expected to be completed this year. Average production of the acquired assets in the first two months of 2018 was around 31,000 boe/d. Shell's New Zealand gas production averaged about 142mn ft3/day in 2017, according to its 2017 annual report, released on March 15.
Rainer Seele, OMV CEO said: “This acquisition is an important step to develop Australasia into a core region in line with our new strategy," which he unveiled March 13.
In parallel to the acquisition of the interests in Pohokura and Maui, OMV has also acquired Shell’s 60.98 % interest in the Great South Basin exploration block (GSB). The transfer of GSB is immediately effective and increased OMV’s stake in GSB to 82.93%. OMV has acquired Shell’s tank farm asset as well.
“This follows a two-year strategic review of Shell’s interests in New Zealand and the sale of Shell’s interest in Kapuni in 2017. It is consistent with the Shell Group strategy of divesting $30bn of assets by end 2018, and is in line with Shell’s drive to simplify the upstream portfolio and re-shape the company into a world class investment,” Shell said in a separate statement issued the same day.