Shell Might Pull Out of New Zealand
Shell has announced that its interests in New Zealand are under review “in keeping with company’s strategy to become a simpler, more profitable and resilient company.”
Choices have to be made to streamline the global portfolio given the current environment, the company said in a statement. Shell is focusing on large growth opportunities, with deep water and integrated gas as growth priorities.
“New Zealand is a great place to do business and these assets are profitable, well maintained and are an important part of New Zealand’s energy mix” says Rob Jager, Country Chairman of Shell New Zealand.
“The Shell business in New Zealand is a great, but a small part of the global Shell business and hence the decision to undertake a strategic review at this time.”
“We are very conscious of the uncertainty this creates for local staff and New Zealand staff abroad, and we will commit to moving quickly through this review process and to keeping people informed on the outcome of the review.”
Shell has operated in New Zealand for more than 100 years. It still owns substantial stakes in the Maui, Kapuni and Pohokura fields and has a 50 percent interest in Shell Todd Oil Services. Its assets account for about 80 percent of New Zealand's natural gas production.
Shell’s History in New Zealand
Shell's first investment in New Zealand was in 1911, on the West Cost of the South Island.
The Kapuni field, developed in the 1960s, was New Zealand's first commercial gas field and first allowed New Zealanders to tap into home grown hydrocarbon energy resources instead of having to import them.
The Maui gas and condensate field, discovered in 1969, was one of the largest offshore gas fields in the world at that time.
In 2009, the Maui and Kapuni fields marked 30 and 40 years of continuous production respectively.
The Pohokura field, which began production in 2006, is New Zealand's largest gas and condensate field today, meeting around 40 percent of New Zealand's gas requirements.
Shell assumed operatorship, on April 1, 2012, for New Zealand exploration license PEP 50119 in the Great South Basin. Shell joined the venture in August 2011 taking a 50 percent share. This is Shell's first New Zealand exploration outside the Taranaki region.
Until April 1, 2010 Shell also owned and operated a nationwide network of petrol stations, major commercial, aviation, marine, bitumen and chemical businesses, and a distribution network. This business was sold to Infratil Limited and the Guardians of New Zealand Superannuation. This company now operates as Z Energy Limited.