Todd to appeal Pohokura loss
Todd Energy will appeal its loss in a $274 million damages claim case brought in the High Court against Pohokura joint venture partners Shell and OMV.
The appeal is expected to be heard for about two weeks in August next year.
Todd went to the High Court in Wellington in February seeking $274 million in damages from its joint venture partners for limiting the amount of gas that could be extracted from the Pohokura field.
Shell holds 48% of Pohokura, off the coast of Taranaki, with OMV and Todd holding 26% each.
On July 13, Justice Robert Dobson dismissed Todd’s claim of collusion between Shell and OMV and found that no breach of contract had occurred. Costs were awarded to Shell and OMV.
Justice Dobson took the unusual step of recommending that no further court action be taken – though he recognised that an appeal was likely, given the sums involved and the “soured” business relationship between the partners.
He said that the Pohokura field, which produces about 40% of New Zealand’s gas, deserved to be managed without the “significant inefficiency caused by the distraction of this dispute.”
Todd could not be reached for comment on their decision to lodge an appeal.