Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

Shell and Todd in dispute over oil field work programme

Shell and Todd in dispute over oil field work programme

By Pattrick Smellie

Aug. 3 (BusinessDesk) - The joint owners of some of New Zealand's largest oil and gas fields, Shell New Zealand and Todd Energy, are in dispute over non-payment for services provided for work on the Maui, Pohokura, and Kapuni fields.

Companies Office records show Shell Todd Oil Services (STOS), a shell company that sits atop the long-standing partnership, was carrying a contingent liability at Dec. 31 for an unresolved dispute relating to work programmes and budgets for all three fields.

The notes say these have "not been approved and accordingly some JV parties have declined to pay cash calls relating to aspects of the SIEP (Shell International Exploration and Production) charges."

Included in the dispute are issues relating to global technical services, some information technology charges, global support services, regional support services, and regional cross charges.

"The dispute between the parties remains open and includes a difference of views between the parties about the nature and extent of the obligations of STOS to SIEP," the notes say. "The potential impact on the company is indeterminate as at the date of this report."

It appears the issue remains live, with a spokesperson for Shell declining to discuss the issues, citing commercial confidentiality, and a Todd spokesperson referring all questions to the fields' operator, Shell. Exploration New Zealand (SENZL).

Under the contracts governing Pohokura, STOS provides services to SENZL.

(BusinessDesk)

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.