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


Commission may revoke Pohokura gas authorisation

30 September 2004-05 / 038

Commerce Commission may revoke Pohokura
gas authorisation

The Commerce Commission is considering revoking its decision to authorise four companies to enter into arrangements to jointly market and sell gas produced from the Pohokura natural gas field on the basis that a material change in circumstances may have occurred since the authorisation was granted.

The Commission granted authorisation to OMV New Zealand Limited, Shell Exploration New Zealand Limited and Shell (Petroleum Mining) Company Limited and Todd (Petroleum Mining Company) Limited in September 2003. Subject to conditions, the Commission’s authorisation provided for the parties to discuss and agree on all relevant terms and conditions, including price, quantity, rate, specification and liability for the joint sale of gas from the Pohokura natural gas field. The authorisation also provided for the parties to negotiate and enter into contracts for the sale of gas from the field jointly, for example as one seller.

Commission Chair Paula Rebstock said Shell and OMV informed the Commission in April this year that the parties had decided to market gas from the Pohokura field separately.

“On the face of it, this represents a material change in the circumstances around which the Commission determined to authorise the proposed anti-competitive arrangement, and on this basis, the Commission is considering a possible revocation of its decision,” said Ms Rebstock.

“As part of the process, the Commission is inviting interested parties to make submissions on whether revocation is appropriate” said Ms Rebstock.

While the Commission generally prefers separate marketing because competition is enhanced by more competitors in the market, Ms Rebstock said the joint marketing arrangement had been authorised primarily because it was considered that it would bring about earlier production from the field. As that appears to be no longer the case, the Commission considers that there may be a case for revocation of the authorisation.


© 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