Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Maui Royalties Dispute Settled

Associate Minister of Energy Paul Swain announced today that a long-standing dispute between the Maui joint venture partners and the Government over royalty payments on production from the Maui gas and condensate field has been settled.

“I am very pleased that this long-standing dispute has been settled," Paul Swain said.

"The agreed new set of rules should help prevent similar disputes arising in future in relation to the Maui field," he said.

The agreement will result in additional royalty payments by the Maui joint venturers estimated by the Government at approximately $70 million over the life of the field, depending on reservoir performance. The additional payment includes arrears of $15 million.

The dispute arose because the 1973 Maui mining licence set a royalty rate of 5 percent of the value of gas and condensate at the wellhead but did not specify how that value was to be calculated. The Government initiated legal action on the issue in 1988 but withdrew it in 1995.

The Government and Maui joint venturers have now agreed to use a set of rules for calculating wellhead value based on a UK royalty regime introduced in the early 1980s for North Sea oil and gas.

The settlement will result in total royalties from the Maui field of approximately $450 million on the basis of currently expected field performance and a conservative estimate of future oil prices.

In addition to royalties the Crown receives around $65-$90 million a year from an energy resources levy on gas and LPG produced from the Maui field.

Note: The Maui Joint Venturers are Energy Exploration NZ Limited and Fletcher Challenge Petroleum Investments Limited which are owned by Fletcher Challenge Energy (68.75%), Shell (Petroleum Mining) Company Limited (18.75%) and Todd Petroleum Mining Company Limited (12.5%). Shell is currently in the process of acquiring Fletcher Challenge Energy's holdings in the field.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news