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

 

Shell And Apache Agreement With Fletcher Energy

Shell And Apache Reach Agreement With Fletcher Challenge Limited On The Proposed Acquisition Of Fletcher Challenge Energy

Shell Overseas Holdings Limited and Apache Corporation (Houston, USA) have signed an Arrangement Agreement with Fletcher Challenge Limited (FCL) in New Zealand relating to the acquisition of its Energy Division, Fletcher Challenge Energy (FCE). The acquisition is subject to approval by the New Zealand Commerce and the Overseas Investment Commissions, the shareholders of FCL and regulatory approvals in other countries where FCE is active.

Shell and Apache’s joint offer of US $ 1.63 billion was the result of an invitation to bid following FCL’s decision to separate its respective Divisions. Shell’s contribution to this joint offer amounts to US$ 1.03 billion, including repayment of debt. FCE shareholders will also receive, as additional consideration, an entitlement reflecting the value of the FCE interest in Capstone Turbine Corporation, a US based turbine manufacturer.
The offer has been accepted by the Board of FCL.

The Arrangement Agreement covers the acquisition by Shell of all FCE’s assets in New Zealand and Brunei. Downstream interests, such as the Challenge Petroleum retail network (Challenge !), the oil products terminals in New Plymouth, Timaru and Brisbane (Australia) and the equity in the New Zealand Refining Company, will be subsequently on-sold to a new independent entity, to be identified by FCL as part of its Court approved separation process. Also to be divested are FCE’s interests in the Kupe field, in Kapuni Gas Contracts Limited and in Fletcher Challenge Gas Investments Limited. As part of the Arrangement Agreement FCE’s exploration and production assets in Canada and Argentina will be acquired by Apache Corporation subject to the necessary approvals.

Commenting on the proposed acquisition, Shell New Zealand Country Chairman Ed Johnson said: “Shell has had an active upstream presence in New Zealand since 1930 and this deal represents a clear commitment for continued investments in this country . There is a very good strategic fit between our existing upstream activities and the assets we propose acquiring from FCL. Indeed we are already partners in some of them and this is a natural business development.”

Shell Regional Exploration and Production Director, Raoul Restucci, reaffirmed: “The proposed acquisition of FCE secures the natural integration of quality assets with our regional portfolio and a further shift in gas production and reserves. Total incremental proven and expectation reserves secured by Shell amount to approximately 210 and 350 million barrels oil equivalent respectively.”
“Subject to regulatory and FCL shareholder approvals, the Shell and Apache bid partnership delivers a highly efficient and targeted offer, maximising value creation for respective shareholders”.

Ends

For further information please contact:

Shell International Media Relations (London) Dave Stuart + 44 (0) 20 7934 3453
Shell New Zealand (Wellington) Antonius Papaspiropoulos + 64 (0) 4 4980149


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Digitl: Bumper year ahead for NZ IT sector

Gartner says New Zealand spending on technology products and services will grow 7.4 percent this year. The company’s latest forecast says the market will total NZ$15.3 billion in 2022... More>>



Fonterra: Lifts Forecast Farmgate Milk Price Range

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range to NZD $8.90 - $9.50 per kgMS, up from NZD $8.40 - $9.00 per kgMS. This increases the midpoint of the range, which farmers are paid off... More>>

Federated Farmers: NAIT Levy Increases Must Achieve Accurate, User-friendly System
Nobody welcomes extra costs but if OSPRI is to catch-up on under investment in the NAIT platform and deliver on its workability and farmer support, levy increases are probably necessary, Federated Farmers says... More>>



Skoltech: Study Probes Earth’s Turbulent Past To Explain Where Oceans Came From

The origin of water on our planet is a hot question: Water has immense implications for plate tectonics, climate, the origin of life on Earth, and potential habitability of other Earth-like planets. In a recent study in Physical Review Letters, a Skoltech professor and his Chinese colleagues suggest... More>>


Statistics: Household Net Worth Grows In The September 2021 Quarter But At A Slower Pace Compared To March 2021

Household net worth grew by $60.7 billion in the September 2021 quarter compared with the June 2021 quarter, Stats NZ said today. This represents an increase of 2.5 percent, a similar result to the June 2021 quarter, which was up $60.6 billion or 2.6 percent... More>>

TradeMe: Job Market Ends 2021 On A High With Record Number Of Vacancies
The New Zealand job market finished 2021 on a high note, with the ball still firmly in the job hunters’ court, according to the analysis of 69,600 vacancies listed on Trade Me Jobs for the quarter ending 31 December (Q4)... More>>