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

 

Commission revokes Pohokura gas authorisation

Media Release


Issued 2 June 2006/134

Commission revokes Pohokura gas authorisation

The Commerce Commission has revoked the 2003 authorisation it granted to Shell, Todd and OMV to jointly sell gas from the Pohokura field.

Commerce Commission Chair Paula Rebstock said that there had been a material change in circumstances since the Commission granted authorisation to the three owners of the Pohokura field in September 2003.

At that time it was considered that an authorisation permitting the joint sale of Pohokura gas would avoid a one year delay in using the gas, because the owners would not need to negotiate the complex contractual arrangements necessary to sell the gas separately. The Commission authorised the arrangement on the basis that avoiding a one year delay was a substantial benefit to the public, which outweighed the anti-competitive nature of joint selling.

However, the Pohokura owners were ultimately unable to agree on arrangements to jointly sell the gas. Each owner separately sold their share, without the expected delays in production.

“Separate selling has not resulted in delays,” Ms Rebstock said, “so there is now no public benefit in allowing the parties to enter into an anti-competitive arrangement to jointly sell the gas.”

“For that reason the Commission has decided to revoke the authorisation.”

A public version of the Commission’s decision will be available as soon as practicable on the Commission’s website www.comcom.govt.nz under Public Registers.

Background

The Pohokura field is owned and operated as a joint venture by Shell (48%), OMV (26%) and Todd (26%). Production from the field is due to commence during 2006. When in full production, the Pohokura field is expected to supply up to half New Zealand’s gas consumption.

Under the Commerce Act, the Commission may authorise an anti-competitive arrangement if the benefits to the public of New Zealand outweigh the detriments arising from the lessening of competition.

The Pohokura authorisation was reviewed by the Commission under section 65 of the Commerce Act. Section 65 allows the Commission to revoke an authorisation if it was granted on the basis of information that was false or misleading, or if there has been a material change in circumstances since the authorisation.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>