Shell, Todd Energy in dispute over oilfield service payments

BUSINESSDESK: The joint owners of some of New Zealand's largest oil and gas fields, Shell New Zealand and Todd Energy, are in dispute over non-payment for services provided for work on the Maui, Pohokura, and Kapuni fields.

Companies Office records show Shell Todd Oil Services, a shell company that sits atop the long-standing partnership, was carrying a contingent liability at December 31 for an unresolved dispute relating to work programmes and budgets for all three fields.

The notes say these have "not been approved and accordingly some JV parties have declined to pay cash calls relating to aspects of the SIEP (Shell International Exploration and Production) charges".

Included in the dispute are issues relating to global technical services, some information technology charges, global support services, regional support services and regional cross charges.

"The dispute between the parties remains open and includes a difference of views between the parties about the nature and extent of the obligations of STOS to SIEP," the notes say.

"The potential impact on the company is indeterminate as at the date of this report."

It appears the issue remains live, with a spokesperson for Shell declining to discuss the issues, citing commercial confidentiality, and a Todd spokesperson referring all questions to the fields' operator, Shell Exploration New Zealand (SENZL).

Under the contracts governing Pohokura, STOS provides services to SENZL.

Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.6587 0.0013 0.20%
AUD 0.9100 0.0037 0.41%
EUR 0.6205 0.0015 0.24%
GBP 0.4356 0.0009 0.21%
HKD 5.1055 0.0106 0.21%
JPY 80.7550 0.0880 0.11%


Commodity Price Change Time
Gold Index 1070.0 -5.420 2015-11-25T00:
Oil Brent 45.5 1.070 2015-11-25T00:
Oil Nymex 43.0 0.130 2015-11-25T00:
Silver Index 14.2 0.000 2015-11-25T00:


Symbol Open High Last %
NZX 50 6069.1 6087.9 6069.1 0.31%
NASDAQ 5106.9 5124.1 5102.8 0.26%
DAX 10958.4 11186.7 10934.0 2.15%
DJI 17820.8 17854.9 17812.2 0.01%
FTSE 6277.2 6348.1 6277.2 0.96%
HKSE 22749.6 22787.5 22498.0 -0.06%
NI225 19930.0 19992.4 19847.6 0.49%