Royal Dutch Shell is reviewing its activities in New Zealand as part of its plans to streamline its global portfolio in a context of falling crude oil prices. Shell is seeking to cut costs by US$11bn in 2015, to cope with the record low oil prices that made the company announce US$8bn of write-offs in Alaska (United States) and Canada.
Shell is the major shareholder of the two largest oil and gas fields in New Zealand, namely Maui (Shell 83%, OMV 10%, Todd Energy 6.25%) and Pohokura (Shell operator with 48%, Todd Energy 26% and OMV 26%), which produce nearly half of the total oil production. Through its stakes in these fields, the company is the largest gas producer in the country (about 70% of gas production); it also holds a deepwater exploration licence in the Great South Basin and a majority stake in the Maui Pipeline, the largest high-pressure pipeline in New Zealand, which was put up for sale earlier in 2015.
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