Maui reserves agreement by March

By Phil Boeyen, ShareChat Business News Editor

Thursday 13th December 2001

Gas field operator Maui Development Limited says it should be in a position by March next year to agree a new Maui reserves figure with the Crown.

Last month the company, which is majority owned by Shell, released details showing the Maui gas field was likely to be used up two years earlier than expected, by 2007.

Maui Development Limited (MDL) says the Maui Gas Contract contains a defined process for agreeing the gas reserves from the Maui field and can be instigated by either party.

MDL chairman, Dr Lloyd Taylor, says the company has now informed the Crown that it wishes formally to agree the remaining Maui gas reserves in a process known as "redetermination".

"Essentially this process allows a matching of the quantities to be delivered from the Maui field with the latest estimate of the remaining reserves in the field. In this way MDL can redefine the quantities of gas which will be available to the Crown.

"As previously advised, MDL has new information relevant to the determination of reserves in the Maui field. MDL expects to be in a position by March 2002, when current reserves estimation studies will be completed, to meet with the Crown and begin to agree a new Maui reserves figure."

Dr Taylor says once a new Maui reserves figure is agreed, the contract provides for an associated process to enable the agreed remaining Maui reserves to be used to define a new delivery profile for Maui gas to the Crown.

Energy companies Contact (NZSE: CEN) and NGC (NZSE: NCH) have reassured gas customers over the possible shortfall in the supply of Maui gas and say they are incorporating any new data into their future planning.

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