Oil giant Shell reacts to media outbursts that the company is stopping operations in New Zealand and reassures business will continue for the time being.
There were reports last week from Australia that Shell will be cutting operations in New Zealand. But the Ango-Dutch multinational oil and gas company has reassured consumers that it’s business as usual.
The Australian, which is the biggest-selling national newspaper in the country, announced late last week that Shell would be getting out of New Zealand. Shell’s newly appointed New Zealand head Rob Jager has reassured the public that the oil giant is still exploring a number of options about its involvement with New Zealand but that there will be no movements for the time being.
Jager was originally quoted saying last year that Shell would be reviewing its assets, resulting in either the company continuing business in New Zealand or completely exiting the country all together. He has reassured workers that a buyer would take over their assets even if they were to move away from New Zealand.
“It’s business as usual and there is nothing material to report,” he said.
Just over two months ago, Shell sold its Maui Pipeline to Australian company First Gas Limited for $335 million. This is New Zealand’s biggest high pressure transmission pipeline and runs between the Oaonui Production Station and the Huntly Power Station.
“The evolution, globally, of big fields is that they move from development by the majors to ongoing operation by smaller and emergent businesses,” said Chief Executive of Venture Taranaki Stuart Trundle.
“In the short term it remains business as usual, and any operator who purchases these assets will look to grow their value.”
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