Jadestone Energy plc has agreed with OMV New Zealand Ltd. to terminate the agreement to acquire a 69% interest and operatorship of the Maari oil field project in the Taranaki basin off the southwest coast of the North Island of New Zealand.
Jadestone cited legislative changes to New Zealand’s upstream regulatory framework at end-2021 and the lack of progress in seeking clarity on the process, terms, and associated timeline required to complete the transaction.
The acquisition, for $50 million in cash, was first announced in November 2019.
Jadestone has been signaling that the lack of progress on Maari was an increasing concern and now, almost 12 months since the new legislation came into effect, there is still little to no clarity on what is required from the company to receive the necessary government approval to complete the acquisition, said Paul Blakeley, Jadestone chief executive officer and president.
With the Maari license due to expire in 2027, little time is left to confidently invest and it is time to move on, he said.
The project includes Maari and nearby Manaia oil fields in permit PMP38160 about 80 km off the south Taranaki coast in 100 m of water. Production is via a wellhead platform with subsea pipeline connected to the Roara FPSO.