Sharechat Logo

NZOG takes $5mln uplift for historical royalties

Tuesday 1st July 2014

Text too small?

New Zealand Oil & Gas has completed protracted negotiations over historic royalties owed by Genesis Energy on its share of the Kupe oil and gas field's production, giving the company a one-off $5 million after tax lift to earnings in the current financial year and an expected increase in ongoing revenue of between $1 million and $2 million a year.

The company continues to negotiate the over-riding royalty issue with Origin Energy, the other major stakeholder in Kupe.

The royalties issue originated from transactions in the 1980's, when National Petroleum acquired 89 percent of the Kupe permit and agreed to pay over-riding royalties to the parties it acquired the licence interest from.

"Complex corporate reorganisations and transfers since have affected tolse arrangements," said NZOG in a statement to the NZX.

Meanwhile, Austrian oil and gas producer OMV has lodged an application under the new legislation governing activity in New Zealand's offshore Exclusive Economic Zone, to continue drilling up to seven wells in the Maari permit.

While drilling currently under way was covered by transitional provisions in the EEZ Act, those ceased on June 28 and requires a consent to continue drilling beyond that date.

Its marine consent application is now open for public submissions.

 

 

 

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report