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

 

Half A Billion Accounts: 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>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news