✨ Financial Statements Notes
30 NOVEMBER 2005
NEW ZEALAND GAZETTE, No. 199
5045
$Thousands
2005
2004
b) Deferred taxation has been calculated as follows:
Balance as at 1 July
3,562
8,273
Movement for the Year
(1,366)
(4,711)
Prior Period Adjustments and Other Movements
2,196
3,562
Deferred tax includes provision for the tax effect of all differences between the tax base of assets and liabilities and their carrying amounts in the financial statements.
3. Gas Entitlements
$Thousands
2005
2004
Maui and Other Prepaid Gas
Balance expected to be realised:
Within one year
19,180
33,403
Later than one year
11,458
27,829
30,638
61,232
a) Maui Gas
On 1 June 2004, NGC entered into variations to its Maui gas contracts which set the total amount of gas to be delivered under the contracts at the quantity determined by the independent expert on 7 February 2003. Under the variations the redetermined amount of gas would be delivered and there would be no further redeterminations. Further, if the Maui Mining Companies do not deliver this quantity they must supply \'make up\' gas for any shortfall from another supply or pay liquidated damages for any undelivered gas. At 30 June 2005, NGC has 25.3 PJ of remaining Maui gas entitlements. As part of these variations to the Maui gas contracts NGC is guaranteed delivery of 23.2 PJ of its remaining Maui gas from its original Advance Paid and Prepaid gas entitlements. The Advance Paid and Prepaid gas entitlements require no further payment to the Crown when delivery is taken except for payment of the energy resource levy. The remaining 2.1 PJ can be uplifted by NGC at the previous contract prices. As part of the variations executed on 1 June 2004, NGC also has a right of first refusal at market price along with Contact Energy Limited (Contact) over any additional gas found beyond the redetermined amount after first reserving 40 PJ for Methanex New Zealand Limited (Methanex).
b) Kapuni Gas
NGC currently has entitlement to 50% of the recoverable gas reserves of the Kapuni field as they were determined to be at 1 April 1997. As at 30 June 2005 this is estimated to be approximately 91 PJ following a downward reserves reassessment in February 2005 of 26 PJ (NGC share), of which, 69 PJ is at current Kapuni gas contract prices while the balance is expected to be at market prices prevailing when the gas is delivered.
NGC has reached an agreement with Shell (Petroleum Mining) Company Ltd (Shell) to purchase Shell\'s share of Kapuni gas, after Shell has met its pre-existing contract commitments, for the period from 1 January 2005 to 31 December 2013. Deliveries of this Kapuni gas will be dependent on the daily production from the field, but NGC expects that some 45 PJ of gas will be delivered under this contract. The maximum total quantity of gas to be delivered under the contract is 70 PJ less the amounts credited to this contract from its Pohokura Gas Contracts discussed below.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 199
Gazette.govt.nz —
NZ Gazette 2005, No 199
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Notes to the Financial Statements for Gas Wholesaling Activities
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🏭 Trade, Customs & IndustryFinancial Statements, Expenses, Income Tax, Gas Wholesaling, NGC