News | Business
24 Jun 2017 7:05
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Olympic Games
  • Ski Report
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    NZ Oil & Gas buys back into Kupe

    New Zealand Oil & Gas has bought back into the Kupe oil and gas field at a lower price than it sold to Genesis Energy just months ago.


    New Zealand Oil & Gas has bought back into the Kupe oil and gas field at a lower price than it sold to Genesis Energy just months ago.

    NZOG has agreed to buy Mitsui E&P Australia's 4 per cent interest in Kupe for $35 million in a transaction with an effective date of January 1.

    It comes less than two months after it agreed to sell its original 15 per cent holding in the field to Genesis for $168 million, effective at that same date.

    The transaction prices indicate Genesis valued Kupe at about $1.1 billion while NZOG's deal with Mitsui puts an $875 million value on the field.

    Genesis was willing to pay a premium because the 15 per cent interest added to its existing 31 per cent stake in the field, giving it greater influence over the joint venture and helping meet its integrated fuels strategy.

    It also provided an immediate boost to earnings.

    The country's biggest electricity retailer followed up this month by agreeing to buy the retail LPG business of Todd Corp's Nova Energy unit for $192 million, a deal that will lift its share of retail LPG in New Zealand to 19 per cent from 3 per cent and make it the second-largest player in that market by customers behind Contact Energy.

    For its part, NZOG would get ongoing income from what it saw as a high-quality field and the funds freed up from the earlier sale could be used to buy other assets.

    "The combined transactions allow us to better diversify our portfolio," NZOG chief executive Andrew Jefferies said in a statement.

    The transaction, which adds 2.6 million barrels of oil equivalent to NZOG's reserves as at January 1, requires regulatory approvals and agreement from the other joint venture partners, who have first right of refusal.

    Kupe is operated by Origin Energy, which has a 50 per cent interest.

    First discovered in 1986, Kupe entered production in 2009.

    NZOG shares last traded at 63 cents and have gained 31 per cent in the past 12 months. Last month the company gained High Court approval for a $100 million return of capital to shareholders via a scheme of arrangement.


    NZN




    © 2017 NZN, NZCity


     Other Business News
     23 Jun: Hammer attack on scrap metal worker
     23 Jun: NZ dollar steady, markets look to US data
     23 Jun: NZ shares fall after 'uneventful' week
     23 Jun: NZ wool prices fall at auction
     23 Jun: Vector signs deal in Alice Springs
     23 Jun: Kiwis help Caribbean's disaster planning
     22 Jun: Seeka tips drop as kiwifruit harvest down
     Top Stories

    RUGBY RUGBY
    Lealiifano chance for Super finals return More...


    BUSINESS BUSINESS
    Hammer attack on scrap metal worker More...



     Today's News

    Entertainment:
    Naomi Watts and Reese Witherspoon sent heartfelt birthday messages to Nicole Kidman on Wednesday (20.06.17) 6:57

    Entertainment:
    Robbie Williams was nearly rushed to hospital after he had a panic attack at home 6:27

    Rugby League:
    Titans' Hayne stars again in Campbelltown 6:27

    Entertainment:
    Haley Joel Osment got his big break in Ikea 21:57

    Rugby League:
    Sharks won't add to Origin casualty ward 21:57

    Business:
    Hammer attack on scrap metal worker 21:57

    Entertainment:
    Puff Daddy has told Jay-Z to "get ready" for "a lot of love" 21:27

    Rugby League:
    Hunt return to NRL due to injury, not form 21:17

    Entertainment:
    Scarlett Johansson has been spotted enjoying a "romantic" dinner with her attorney 20:57

    Education:
    'Brain finger-printing' could soon be used as evidence in Australian courts 20:57


     News Search






    Power Search


    © 2017 New Zealand City Ltd