SHELL SEEKS COMMERCE COMMISSION CLEARANCE
Shell Exploration Company BV is seeking clearance from the New Zealand Commerce Commission to acquire the New Zealand
assets of the Energy Division (FCE) of Fletcher Challenge Limited (FCL).
Shell New Zealand Country Chairman, Ed Johnson said, "Should Shell obtain Commerce Commission approval and subsequently
complete a deal with FCL and FCE's shareholders, we will not only increase Shell's investments in New Zealand but also
strengthen our interest in a region that, with the recovery of Asian Pacific economies, offers significant opportunities
For Shell the opportunities from this potential acquisition are in the ability to apply international technical
capabilities more widely to the exploration and production of gas in New Zealand.
Today, Shell companies have interests in exploration and production ventures in over 45 countries and employ around
30,000 staff. As operator, Shell is responsible for producing oil and gas in 21 countries.
Mr Johnson said, "The focus of Shell's acquisition would be the exploration and production assets of FCE, but given
FCE's diversification, there are other assets that may have to be included in the deal."
FCE has already signalled its intention to focus on exploration and production and therefore to look for opportunities
to divest some assets. Shell will take a similar position.
For example, Shell has no interest in and does not intend to purchase the FCE assets of Challenge Petroleum (Challenge!)
or the equity holding in the New Zealand Refining Company. This ensures that the New Zealand motorist would be
unaffected by the acquisition should it proceed.
Our application to the Commission presents a proposal to meet the needs of the New Zealand Commerce Act and has been
necessarily framed in the broadest terms to cover the possibility that any of FCE's current assets form part of the
This acquisition is also subject to approval of the Overseas Investment Commission. An application has been lodged with
MEDIA RELEASE FROM SHELL NEW ZEALAND LTD
SHELL EXPLORATION AND PRODUCTION IN NEW ZEALAND
* Shell technology discovered, developed and delivers energy to meet 57% of New Zealand's total energy needs.
* Shell holds interests in the Maui (18.75%) oil and gas and Kapuni (50%) gas field operations. These gas fields operate
24 hours a day, 365 days a year, and together supply around 90% of New Zealand's gas.
* Shell has a 49% interest in the recently discovered Maari oil field. This field has estimated reserves of 57 million
barrels of oil.
* Shell has been involved in the exploration and production of oil and gas in New Zealand since 1930 when several wells
were drilled on the West Coast of the South Island.
* In 1959, Shell was involved in the discovery of Kapuni, New Zealand's first commercial onshore gas field.
* A seven year programme of offshore exploration during the 1960s ended with the discovery of the Maui gas field in
1968. At the time Maui was one of the largest offshore gas fields in the world.
SHELL IN NEW ZEALAND
* Shell has been in New Zealand for more than 87 years. New Zealand was one of the first markets outside Europe to see
the Shell brand.
* Shell has over 350 retail locations nationwide. Shell service stations deliver over a quarter of New Zealand's fuel
needs. We offer a range of convenience store products and reward customer loyalty with Fly Buys points.
* Commercial products account for around 55% of our total sales. From fuelling ships and airlines, to lubricating farm
tractors, to powering dairy factories - Shell supplies commercial products to businesses direct in bulk or prepacked.
* Shell has had a major investment in forestry in New Zealand for 19 years. We established a forestry joint venture in
Northland in 1981 to create a fast growing renewable resource for alternative energy generation.
* Shell owns 50% of New Zealand's Burger King Franchise. Bringing Burger King to some of our service stations is one of
many ways in which Shell has diversified and enhanced its retail operations in the face of increasing competition.
* Shell Chemicals is New Zealand's leading manufacturer, importer and marketer of petrochemicals (chemicals based on
refinery products) and surfactants (used in detergent products).
* Shell has one of the largest single floor open plan office areas in Australasia. Shell's new head office in
Wellington's Queens Wharf Centre accommodates more than 250 people across one floor. The innovative design encourages
open communication and helps create a flexible, team environment.
* Shell is the most family friendly company in New Zealand. A joint entry by Shell New Zealand Ltd and Shell Services
International (NZ) Ltd won the 1999 Equal Employment Opportunity Trust Work and Family Award. The award recognised their
commitment and innovation in enabling their staff to balance work and family life.
* Shell sponsors two full-time environmental teachers in New Zealand. Sponsorship, worth $500,000, allows the World
Wildlife Fund - New Zealand to expand its environmental education programmes around the country.
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