INDEPENDENT NEWS

Shell Sells Its Share in Kapuni to Todd Energy

Published: Thu 6 Apr 2017 12:08 PM
MEDIA RELEASE
THURSDAY, APRIL 6, 2017
Shell Sells Its Share in Kapuni to Todd Energy
Shell advises it has entered into a sale and purchase agreement (SPA) for the sale of Shell’s interests in the Kapuni assets to Todd Energy, a New Zealand company that has been in the Kapuni Joint Venture since the venture’s formation in 1955.
The deal sees Shell acquire the remaining 50% of the joint venture operating company, STOS, from Todd Energy thereby owning 100% of the shareholding of STOS upon completion of the deal. This will simplify Shell’s operational structure in preparation for any possible portfolio changes on the remaining assets.
“We are pleased to be selling our interest in Kapuni to our long term joint venturer Todd Energy which, as an original participant in Kapuni, has demonstrated a huge commitment to the asset, the region and to New Zealand,” says Rob Jager, Country Chair of Shell NZ.
The SPA is subject to certain conditions which include normal regulatory approvals and is likely to take some months to complete.
Operatorship of the Kapuni field will transfer to Todd upon completion.
As part of the deal, about 50 employees working on Kapuni may have their positions and their employment transferred to Kapuni Services Limited (KSL), which upon completion will be owned by Todd Energy.
At this time of change, there are two high priorities - continuing to run our assets in a safe and reliable manner and care for our people.
Respect and care for employees has been a key consideration for Shell through the strategic review and will remain so in the period ahead.
Shell will continue to explore divestment options for its remaining assets and interests in New Zealand. This is consistent with the Shell Group’s approach to re-shaping its global portfolio in line with its long-term strategy.
ENDS

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