New Zealand Oil & Gas sold its 15% stake in the Kupe oil and gas field for $168 million.
Simpson Grierson advised New Zealand Oil & Gas on the sale of its 15% interest in the Kupe gas, LPG and condensate fields to Genesis Energy.
The effective date of the transaction, valued at $168 million, will be 1 January 2017.
The sale is subject to approval by New Zealand Oil & Gas shareholders and the approval of the Minister of Energy and Resources will also be sought.
Simpson Grierson's team was led by partners Dave Trueman and Don Holborow.
Genesis Energy, New Zealand’s largest retail power company, previously owned 31% of the oil and gas field.
The transaction significantly increases Genesis Energy’s stake to 46%. Origin Energy, the operator of Gas Kupe, owns 50% while Mitsui E&P retains 4% of shares.
The buyout of New Zealand Oil & Gas’ interest is expected by Genesis Energy to boost pretax earnings by $15 million and net profit by $2 million in fiscal 2017.
“The increased stake enables Genesis Energy to access and manage more flexible fuel supply well into the next decade,” Genesis Energy’s Marc England said in a statement.
“The strong cash flows will also provide headroom to invest in organic growth areas aligned to Genesis Energy's strategy, such as technology-enabled home energy management,” the CEO added.
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The effective date of the transaction, valued at $168 million, will be 1 January 2017.
The sale is subject to approval by New Zealand Oil & Gas shareholders and the approval of the Minister of Energy and Resources will also be sought.
Simpson Grierson's team was led by partners Dave Trueman and Don Holborow.
Genesis Energy, New Zealand’s largest retail power company, previously owned 31% of the oil and gas field.
The transaction significantly increases Genesis Energy’s stake to 46%. Origin Energy, the operator of Gas Kupe, owns 50% while Mitsui E&P retains 4% of shares.
The buyout of New Zealand Oil & Gas’ interest is expected by Genesis Energy to boost pretax earnings by $15 million and net profit by $2 million in fiscal 2017.
“The increased stake enables Genesis Energy to access and manage more flexible fuel supply well into the next decade,” Genesis Energy’s Marc England said in a statement.
“The strong cash flows will also provide headroom to invest in organic growth areas aligned to Genesis Energy's strategy, such as technology-enabled home energy management,” the CEO added.
Related stories:
Two firms involved in major private oil company sale
Gilbert + Tobin acts on landmark Trans-Tasman energy demerger
