1 Jul 2014

Kupe oil and gas deal

1:46 pm on 1 July 2014

New Zealand Oil & Gas has struck a deal with Genesis Energy over the Kupe oil and gas field that will increase its net profit by $5 million in the year ended last month.

New Zealand Oil & Gas owns 15 percent of the Kupe project while Genesis has 31 percent.

The confidential settlement clarified several royalties issues, such as whether Genesis could claim emissions trading points from its share of the project.

The agreement could make it easier for New Zealand Oil & Gas to now reach an agreement over the same issues with Origin Energy, which owns 50 percent of the project.