Royal Dutch Shell PLC has agreed to sell its 50% interest in Kapuni natural gas field, onshore in Taranaki basin on New Zealand’s north island, to its joint venture partner Todd Energy. Financial details were kept confidential.
However, a second part of the deal enables Shell to buy Todd’s 50% of the combine operating company Shell Todd Oil Services (STOS). This company operates two other gas ventures in New Zealand—Maui and Pohokura fields—and the arrangement is seen as a way for Shell to simplify its operating structure in the country as it prepares to divest its upstream assets. Shell and Todd have been together in STOS since 1955.
The deal follows an internal review of Shell’s New Zealand operations announced in December 2015 in response to the slump in world oil prices as the company looked to refocus its gas and deepwater oil businesses.
Shell has been in New Zealand for a century. Kapuni field, which was New Zealand’s first commercial onshore gas field, was discovered in 1959.
Shell still has 84% interest in offshore Maui gas field and 48% in offshore Pohokura oil and gas field. The company says there is no timeline for the sale of these remaining assets.