New Zealand Gazette – 2006 – No. 154

Page 4485

✨ Financial Statements Notes



NGC Gas Wholesaling Activities

Notes to the Financial Statements

For the Year Ended 30 June 2006

For the purposes of the Gas (Information Disclosure) Regulations 1997

  1. Prepaid Gas (Continued)

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 2006 this is estimated to be approximately 76.8PJ (30 June 2005: 91PJ) following a downward reserves reassessment in February 2005 of 26PJ (NGC’s share), of which, 56.3PJ (30 June 2005: 69PJ) 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 45PJ of gas will be delivered under this contract. The maximum total quantity of gas to be delivered under the contract is 70PJ less the amounts credited to this contract from its Pohokura Gas Contracts discussed below.

c) Pohokura Gas

NGC has agreed with Shell to purchase a portion of Shell’s entitlements to gas from Pohokura from 1 July 2006, once the Pohokura field is commissioned, until 30 September 2007. The rates of gas able to be purchased under this contract vary over the term of the contract and NGC may purchase a total amount of up to 35PJ of gas under this contract. The first 10PJ of gas purchased under this contract will be credited to NGC’s entitlement to 70PJ of gas as described above under Kapuni Gas.

NGC has also agreed with Shell to purchase a further portion of Shell’s entitlements to gas from Pohokura from 1 January 2007 until 30 June 2010. Delivery of such gas is dependent on Shell’s share of Pohokura’s daily production, but NGC will have up to 30TJ/day available. NGC may purchase a total amount of up to 38PJ of gas under this contract. Fifty percent of this gas will be credited to NGC’s entitlement to 70PJ of Kapuni gas from Shell as described above.

d) Kahili Joint Venture

NGC agreed with the Kahili Joint Venture (Kahili JV) in 2004 to purchase all the wet gas produced from the Kahili field. The Kahili JV comprises Austral Pacific Energy (NZ) Limited, Arrowhead Energy Limited and Tag Oil (NZ) Ltd (Tag). The field is currently closed pending a decision on re-drilling. The volume expected from any new well is uncertain.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 154


Gazette.govt.nz — PDF NZ Gazette 2006, No 154




✨ LLM interpretation of page content

💰 Certification of NGC Gas Wholesaling Financial Statements (continued from previous page)

💰 Finance & Revenue
9 November 2006
Financial Statements, Gas Wholesaling, Audit, Regulation Compliance, Accounting Policies, Taxation, Comparatives