Shell Offer Certain, Comprehensive & Credible

Shell Offer Is “Certain, Comprehensive And Credible”

Shell says it has no knowledge of any competing offer to purchase the assets of Fletcher Challenge Energy, and it remains confident that shareholders will approve its offer when they meet next Tuesday (March 6).

Shell New Zealand Chairman, Ed Johnson, says Shell’s bid to purchase Fletcher Challenge Energy is “certain, comprehensive and credible”.

“Shell has made a firm bid for the assets and liabilities of Fletcher Energy which is payable at the end of March. This bid comes from a company that has been in New Zealand for 90 years and clearly has the money and the technical competency to make this deal work for New Zealand.”

Mr Johnson says the Shell offer is the culmination of more than nine months worth of extensive and exhaustive examination of Fletcher Challenge Energy’s assets and liabilities.

“This resulted from an open, and competitive tender process, and our offer includes all existing and contingent liabilities of the Fletcher Challenge Energy Division. We believe this offer is a fair one which takes into account all considerations.”

As a result of the acquisition, Shell will increase its long-term commitment to New Zealand, Mr Johnson says.

“We have already made commitments to staff, funding development and future exploration activities that are necessary for value realisation of the country’s oil and gas fields. We have the financial and technical resources to develop existing fields and explore new reserves all of which will contribute to the long term benefit of New Zealand.”

Mr Johnson says Shell’s offer expires on 23 March after which neither Shell nor its partner Apache Corporation would have any obligation to continue.

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