SYDNEY, Australia – Pan Pacific Petroleum (PPP) has completed the purchase from Mitsui E&P Australia Pty Ltd of an additional 5% interest in the Tui area oil project offshore New Zealand in PMP 38158. PPP purchased the additional interest in Tui for a consideration of $143 million. The transfer of interest was approved by the New Zealand Minister of Energy and Resources.
Joint-venture partners in PMP 38158 are PPP, 15.0%, operator AWE Ltd., via subsidiaries, 57.5%; and New Zealand Oil & Gas, via a subsidiary, 27.5%.
With this acquisition, PPP has secured an additional stake in Tui production and has increased its exposure to the planned Pateke-4H appraisal/development well. PPP elected not to increase its existing 50% participation in the Oi exploration well that will be drilled following Pateke-4H; as part of the purchase agreement Mitsui’s interest in Oi has been assigned to subsidiaries of AWE Ltd. and New Zealand Oil & Gas.
PPP’s 50% participating interest in the Oi exploration well is subject to the sole risk provisions of the Tui joint-venture operating agreement. These provide an option for restoration of PEP38158 equities subject to reimbursement of pro-rata costs and the payment of a buy-back premium to PPP by the buy-back parties.