Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Contact Agrees To Acquire Pohokura Gas From OMV

Contact Agrees To Acquire Pohokura Gas From OMV

Contact Energy announced today that it has reached an understanding with OMV New Zealand on the terms of a gas supply arrangement from the Pohokura gas field. OMV New Zealand is one of the three joint venture partners in the Pohokura gas field. OMV New Zealand is a wholly owned subsidiary of OMV Aktiengesellschaft, Austria’s largest listed company and one of the leading oil and gas groups in Central and Eastern Europe carrying out worldwide exploration and production activities.

In early April, OMV New Zealand offered an initial tranche of gas from the Pohokura field to prospective buyers. The volume of gas offered was up to OMV New Zealand’s share of production from the Pohokura field for a period of five years commencing from the field’s first production date. This is expected to be around 30 June 2006.

Under the terms of the arrangements announced today, Contact will purchase the entire initial tranche of gas from OMV.

While Contact is unable to disclose the price for commercial reasons, the payment structure is a mix of a capacity fee based on the maximum daily entitlement, and a variable element based on the actual amount of gas lifted by Contact on any given day.

This structure reflects the seller’s desire to have a high degree of revenue certainty before committing the substantial investment necessary for field development, and the physical characteristics of the gas reservoir.

“Today’s announcement is an important milestone for the company and the industry” said Contact’s Chief Executive, Mr Stephen Barrett.

““By committing to this agreement, we are taking a major step forward to securing New Zealand’s energy future during the remainder of this decade and beyond” said Mr Barrett.

“The volume of gas covered by the arrangement is broadly equivalent to the fuel requirement of our Otahuhu B power station, which can provide power to over 300,000 homes.” “Together with our existing supply arrangements from the Maui and TAW fields, this agreement provides us with increased fuel security in the short to medium term.”

“As a company, we are still keen to secure additional gas supplies to meet our business needs, and also to underpin new investment in gas-fired generation. For these reasons, Contact remains committed to initiatives such as the drilling fund sponsored jointly with Mighty River Power, and the study into New Zealand’s long term fuel options.”

© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news