22 Dec 2019

Taranaki industry undeterred by Tamarind Taranaki liquidation

7:06 pm on 22 December 2019

Most companies owed money by a Malaysian oil prospector are not hopeful of getting it back, a Taranaki business group says.

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Photo: 123rf.com

Tamarind Taranaki, which owns the Tui oil field, was placed into liquidation on Thursday owing an estimated $360 million.

Taranaki Chamber of Commerce chief executive Arun Chaudhari said while this was bad news for companies providing services to Tamarind, only 10 to 15 percent of those owed money were based in Taranaki.

"So the situation here is not exactly grim and there's a lot of projects that are happening with other companies here and that's looking quite promising for those who are working in the industry," he said.

National MP for New Plymouth Jonathan Young said the collapse of the company had driven some local companies to the wall.

Young said for most it would be survivable, but he had heard of one or two already going under.

He said it was unfortunate that the Malaysian-owned company was able to acquire the Tui field through share purchases without the usual scrutiny.

That loophole has now been closed due to work started under the previous National-led government with legislation passed early this year.

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