By FIONA ROTHERHAM
The Commerce Commission's long-running Kupe gas field case will continue to chug its way through the High Court against all four defendants, following a Court of Appeal decision yesterday.
The commission is claiming 1997 transactions involving Fletcher Challenge, Fletcher Challenge Energy, Electricity Corporation of New Zealand and Genesis Power
were anti-competitive and breached the Commerce Act.
The Court of Appeal yesterday allowed the commission to continue with four causes of action against all four defendants. Two earlier causes of action were struck out by the High Court.
Penalties of up to a maximum of $40 million are being sought by the commission.
The Court of Appeal limited the High Court to being able to order only the two Fletcher companies to divest their stakes in the field. Genesis, one of the three baby ECNZs, acquired all of its interests in the Kupe field.
The Court of Appeal found that as ECNZ had already transferred its Kupe interest to Genesis, neither party could be ordered to divest these assets.
But it refused to strike out the claim against Genesis, saying that although it was not directly involved in the alleged breach of the act, it could still be ordered to pay penalties.
Kupe, one of NZ's largest undeveloped gas resources, sits off the Taranaki coast and is thought to contain 16 million barrels of oil and 264 billion cu ft of gas.
