The Commerce Commission today cleared Todd Energy to increase its stake in the joint venture to develop Taranaki's offshore Pohokura oil and gas field.
The clearance allows Todd Pohokura Ltd to take a 9.8 per cent interest from OMV New Zealand Ltd. Todd Energy, through Todd Petroleum Mining Co, previously held a 16.1 per cent interest, with Shell holding 48 per cent through two subsidiaries and OMV holding 35.9 per cent.
The commission said the clearance was a requirement of conditions in its recent decision authorising the joint selling and marketing of gas from the Pohokura field.
Commission acting chairwoman Paula Rebstock said the commission found the increase in Todd's participating interest in Pohokura did not result in a substantial lessening of competition in the market for natural gas production.
"The commission specifically considered that the acquisition would not affect the likelihood and ability of any of the parties to delay development of the field," Ms Rebstock said.
The Pohokura joint venturers are considering appealing against the commission's requirement that field production must start by mid-2006. The commission made that stipulation on September 1 when authorising the Pohokura partners to jointly sell gas rather than sell it in competition with each other.
The partners said the threat of not meeting the 2006 deadline, which would void approval for joint marketing of the gas, posed a "significant additional project risk for those parties seeking to secure project finance".
The partners have until September 30 to decide whether to appeal.
Although saying joint marketing was anti-competitive, the commission allowed it to speed up the development of the Pohokura field, which is the main alternative to the depleted Maui field.
Pohokura is estimated to hold 750 billion cubic feet of gas, making it New Zealand's largest undeveloped field.
- NZPA
Todd cleared to increase stake in Pohokura field
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