Royal Dutch Shell (Shell) has completed the sale of its shares in Shell entities in New Zealand to OMV for $578m.
The transaction includes the Māui, Pohokura, and Tank Farm assets, and the sale of interest in the Great South Basin venture, which was subject to a separate agreement.
Shell said that the sale is consistent with the company’s global drive to simplify the upstream portfolio and reshape the company into a world-class investment.
The share sale includes Shell Exploration NZ (SENZL), Taranaki Offshore Petroleum Company of NZ (TOPCO), Energy Petroleum Taranaki (EPTL), Energy Petroleum Holdings (EPHL), Shell Taranaki, Energy Infrastructure (EIL), SNZ (2011) and Energy Petroleum Investments (EPIL).
Shell GSB (SGSBL) is also being sold as part of a separate transaction.
Shell Australia and New Zealand executive vice-president Zoe Yujnovich said: “We are proud of having worked in New Zealand for more than 100 years and completion of the sale to OMV marks an important milestone in the company’s history.
“Shell staff in New Zealand, past and present, have been key to building a successful New Zealand business. I wish our colleagues all the very best as OMV takes the business forward.”
Employees of Shell Taranaki and Shell NZ 2011 are now part of OMV New Zealand.
In March 2018, Shell reached an agreement to sell its shares in Shell entities in New Zealand to OMV for $578m.
The decision on sale follows a two-year strategic review of the company’s interests in New Zealand and the sale of Shell’s interest in Kapuni in 2017.
The Shell Group’s strategy is to divest $30bn of assets by the end of 2018.
Shell had also entered into an agreement with OMV to sell its interest in (and operatorship of) the Great South Basin venture, which includes a drilling commitment currently estimated to be $50m.
The Sales and Purchase Agreement was subject to certain conditions, including normal regulatory approvals, and likely to be completed by the fourth quarter of 2018.