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
No comments yet
GTK - Half-Year Results Announcement Date
Government ends war on farming
Sky and BBC Studios renew expanded, multi-year agreement
AOF - Q1 Improved Trading Performance & FY24 Guidance Maintained
Devon Funds Morning Note - 23 April 2024
April 23rd Morning Report
RYM - Group CEO Update
BGI - Director Michael Chai
RAD - Final Dividend and Strong FY24 Operating Performance
RYM - Group CEO Update