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

 


NZOG takes $5 mln uplift for historical royalties

NZOG takes $5 mln uplift for historical royalties

By Pattrick Smellie

July 1 (BusinessDesk) - New Zealand Oil & Gas has completed protracted negotiations over historic royalties owed by Genesis Energy on its share of the Kupe oil and gas field's production, giving the company a one-off $5 million after tax lift to earnings in the current financial year and an expected increase in ongoing revenue of between $1 million and $2 million a year.

The company continues to negotiate the over-riding royalty issue with Origin Energy, the other major stakeholder in Kupe.

The royalties issue originated from transactions in the 1980's, when National Petroleum acquired 89 percent of the Kupe permit and agreed to pay over-riding royalties to the parties it acquired the licence interest from.

"Complex corporate reorganisations and transfers since have affected tolse arrangements," said NZOG in a statement to the NZX.

Meanwhile, Austrian oil and gas producer OMV has lodged an application under the new legislation governing activity in New Zealand's offshore Exclusive Economic Zone, to continue drilling up to seven wells in the Maari permit.

While drilling currently under way was covered by transitional provisions in the EEZ Act, those ceased on June 28 and requires a consent to continue drilling beyond that date.

Its marine consent application is now open for public submissions.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news