Shell's exploration and production work in New Zealand is concentrated on the Taranaki Basin.
Shell's exploration and production work in New Zealand is concentrated on the Taranaki Basin.
Shell is reviewing its New Zealand operations as the company streamlines its global operations.
All oil and gas exploration companies are under pressure from low prices and country chairman of Shell New Zealand Rob Jager said "have to be made to streamline the global portfolio given the current environment."
IfShell pulled out of New Zealand it would deal a major blow to the oil and gas industry.
Shell-owned ventures account for around half of New Zealand's total natural gas production and a significant proportion of the country's condensate (light oil) production.
Shell's exploration and production is concentrated on three major assets in the Taranaki region.
The company is the majority equity holder (83.75 per cent) of the Maui gas and condensate field, which has provided New Zealand with a sustained supply of natural gas since 1979.
It also has a 50 per cent share in Kapuni, New Zealand's oldest gas and condensate field. Shell is also the largest joint venture partner (48 per cent ) and the operator of the Pohokura field, which began production in 2006.
New Zealand is a great place to do business and these assets are profitable, well maintained and are an important part of New Zealand's energy mix.
According to its website Shell has a 50 per cent share in Shell Todd Oil Services (STOS), which operates the Maui and Kapuni fields. Overall, Shell's operating ventures produce around 80 per cent of New Zealand's total natural gas production on behalf of Shell and our field partners.
Shell also has interests in the Great South Basin. Jager said world Shell was focusing on large growth opportunities, with deep water and integrated gas as growth priorities.
"New Zealand is a great place to do business and these assets are profitable, well maintained and are an important part of New Zealand's energy mix," he said.
"The Shell business in New Zealand is a great, but a small part of the global Shell business and hence the decision to undertake a strategic review at this time."
He said the company was " very conscious" of the uncertainty the review created for local staff and New Zealand staff abroad.
"We will commit to moving quickly through this review process and to keeping people informed on the outcome of the review."
In 2010 Shell sold its network of petrol stations, major commercial, aviation, marine, bitumen and chemical businesses, and a distribution network. to Infratil and the New Zealand Superannuation fund, leading to Z Energy being set up.
