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

 


Agreement reached on Kupe overriding royalty

1 July 2014
Agreement reached on Kupe overriding royalty

Agreement has been reached between New Zealand Oil & Gas and Genesis Energy over the payment of overriding royalties from the Kupe oil and gas field.

The agreement will increase New Zealand Oil & Gas net profit after tax for the 2013-14 financial year by $5 million. The impact in the 2013-14 financial year will reflect payments relating to that financial year as well as for prior years. New Zealand Oil & Gas expects its future revenue from Kupe will increase by $1-2 million each year.

The overriding royalty has been under negotiation for several years. Negotiations are continuing with another Kupe partner, Origin Energy.

The royalty arrangements originate from a series of transactions in the 1980s, when National Petroleum acquired an 89 per cent interest in what was then a prospecting licence in Kupe.

As part of the acquisition, National Petroleum agreed to pay overriding royalties to the parties it acquired its interest from.

Complex corporate reorganisations and transfers since have affected those arrangements.

The effect is that an overriding royalty is payable to New Zealand Oil & Gas for petroleum produced from the Kupe licence area. The calculation of the value payable has been the subject of negotiation, which has been disclosed in financial accounts for recent years as a contingent asset.

"New Zealand Oil & Gas is pleased to conclude negotiations with Genesis Energy on mutually satisfactory terms," New Zealand Oil & Gas chief executive Andrew Knight says.


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

f work for Pumpkin Patch staff

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news