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Shell applies for Fletcher Energy again

By Phil Boeyen, ShareChat Business News Editor

Friday 20th October 2000

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Energy company Shell has lost little time in reapplying to the Commerce Commission to buy Fletcher Energy, this time offering to divest additional assets if it gains approval.

Just last week the Commerce Commission turned down Shell's proposal to buy Fletcher's energy division, saying the company would have market dominance in the current gas production market, the post-2009 gas production market, and the LPG production market.

Commerce Commission chairman, John Belgrave, says in its second application Shell promises to divest all of Fletcher Energy's equity interest in a number of energy fields, including Tariki, Ahuroa, Waihapa, Ngaere, Ngatoro and McKee.

Shell will also divest a 10% equity share in the Maui field, and a 3.6% equity interest in the Pohokura field and in the petrol exploration permit associated with that field, to take its equity interest there to 48%.

Shell says the divestments will happen within 12 months of settlement.

Mr Belgrave says the Commerce Commission will now investigate the impact the new proposal will have on the gas related markets it has previously assessed.

The Commission has 10 working days to make a decision but the time can be extended if necessary.

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