Pohokura Gas Field

Final Determination on Revocation of Decision 505

02/06/2006 (1 documents)

Pohokura Final Determination, 02 June 2006.pdf PDF (214 KB)

Revised Draft Determination on Revocation of Decision 505

13/10/2005 (1 documents)

Revised Draft Determination Pohokura Gas PDF (320 KB): On 1 September 2003, the Commerce Commission authorised, under sections 58 and 61(1)(a) of the Commerce Act, an arrangement between Shell, OMV and Todd, the three members of the Pohokura Joint Venture. Under the arrangement the three companies would jointly (rather than separately) market and sell gas produced from the Pohokura field.

Submissions on Draft Determination on Revocation

23/03/2005 (4 documents)

Genesis Energy - Submission - Proposed Revocation Of Authorisation Decision 505 PDF (23 KB): We refer to the Commerce Commission's ("Commission") draft determination
in respect of its proposed revocation of authorisation in Decision 505 ("Draft
Determination"). The Commission has invited submissions from interested
parties in respect of the Draft Determination by 23 March 2004.
OMV Submission on Pohokura Revocation PDF (163 KB): This submission is made by OMV New Zealand Limited ("OMV"), one of the
three Pohokura Joint Venture ("PJV") participants, in response to the Commerce
Commission's Draft Determination on the proposed revocation of the Pohokura
joint marketing authorisation ("Draft Determination"), made on 23 February 2005.
Shell Public Submission - Pohokura Joint Marketing Authorisation Revocation PDF (106 KB): This submission is made by Shell Exploration New Zealand Limited and
Shell (Petroleum Mining) Company Limited ("Shell") in response to the
Commerce Commission's draft determination dated 23 February 2005 (the
"draft determination"). The draft determination proposes to revoke the
authorisation the Commission granted in Decision 505 to allow Shell, OMV
New Zealand Limited ("OMV") and Todd (Petroleum Mining Company)
Limited ("Todd"), (Shell, OMV and Todd together the "Pohokura Joint
Venturers") to enter into arrangements to jointly market and sell gas
produced from Pohokura gas field.
Todd Energy Submission - Proposed Revocation Of Authorisation Of Arrangements To Jointly Market And Sell Pohokura Gas PDF (166 KB): The grounds for revocation are set out in section 65 of the Commerce Act
1986. There are two limbs to that section:

2.1 First, the Commission must establish jurisdiction under section 65(1).
The Commission asserts jurisdiction under two heads:
(a) that the authorisation was granted on the basis of information
which was false or misleading in a material particular: section 65(1)(a); and / or
(b) that there has been a material change in circumstances since the authorisation was granted: section 65(1)(b).

2.2 Secondly, if there is jurisdiction, the Commission is required to exercise a discretionary power in determining whether to (a) revoke the authorisation; (b) amend the authorisation; (c) enter a substituted authorisation; or (d) leave the authorisation intact.

Draft Determination on Revocation of Decision 505

23/02/2005 (1 documents)

Draft Determination - Proposed Revocation of Authorisation of Arrangements to Jointly Market and Sell Pohokura Gas PDF (189 KB): Draft determination pursuant to the Commerce Act 1986 (the "Act") in the matter of the proposed revocation, by the Commerce Commission, of an authorisation of arrangements whereby OMV New Zealand Limited ("OMV"); Shell Exploration New Zealand Limited and Shell (Petroleum Mining) Company Limited ("Shell"); Todd (Petroleum Mining Company) Limited ("Todd") would jointly market and sell gas produced from the Pohokura natural gas field.

Final Determination

01/09/2003 (1 documents)

Decision 505: Determination Pursuant to the Commerce Act 1996 - Application for Authorisation of a Restrictive Trade Practice. PDF (834 KB): Determination pursuant to the Commerce Act 1986 in the matter of an application for authorisation of a restrictive trade practice.

Commission Conference

03/07/2003 (3 documents)

Conference Transcript, 1 July 2003 PDF (533 KB): Conference Transcript, 1 July 2003
Conference Transcript, 2 July 2003 PDF (682 KB): Conference Transcript, 2 July 2003
Conference Transcript, 3 July 2003 PDF (266 KB): Conference Transcript, 3 July 2003

Submissions on Draft Determination

27/06/2003 (17 documents)

Ballance - Submission On Draft Determination On Pohokura Jv Application For Authorisation Of A Restrictive Trade Practice Pursuant To Section 58 Of The Commerce Act 1986 PDF (214 KB): This submission is in response to the draft determination released 16 May 2003 by the Commerce Commission on the application by OMV (previously Preussag Energie GmbH), Shell Exploration New Zealand Limited/ Shell (Petroleum Mining) Company Limited, and Todd (Petroleum Mining Company) Ltd, to joint market the gas from the Pohokura gas field.
Contact Energy's Submission on the Draft Determination by the Commerce Commission on the Application for Authorisation by Pohokura PDF (325 KB): Contact Energy's Submission on the Draft Determination by the Commerce Commission on the Application for Authorisation by Pohokura
MEUG - Comments on Pohokura Draft Determination PDF (71 KB): MEUG agrees with the Commission's proposed counterfactual that in the absence of authorisation the owners of Pohokura would separately market and sell gas. To overcome the net public detriments were the application to be authorised relative to the counterfactual the Commission proposes certain conditions. Suggesting conditions in the draft determination assists the applicant and interested parties consider how to bridge the benefits-detriments gap; rather than simply declining the application and leaving no guidelines as to how to proceed.
Submission by NGC on the Draft Determination of a Restrictive Trade Practice for the Joint Marketing of Pohokura Gas PDF (107 KB): NGC welcomes the opportunity to make a submission on the Commerce Commission's Draft Determination in respect of the Pohokura Joint Venture's application for authorisation of a restrictive trade practice to jointly market and sell the gas produced from the field. The NGC Group of Companies is involved in the transportation and wholesaling of natural gas in New Zealand. This
submission is made on behalf of the NGC Group of Companies by NGC Energy Limited. NGC looks to this authorisation process to ensure that it can participate as a purchaser on appropriately competitive terms.
Wanganui Gas - Submission on Application for Authorisation of a Restrictive Trade Practice - OMV Shell/Todd, 09 June 2003 PDF (23 KB)
Methanex - Submission on Pohokura Gas Draft Determination PDF (146 KB): Methanex is in general agreement with the analysis and conclusions reached by the Commission in its draft determination. The Commission has concluded that the joint marketing of Pohokura gas will lead to a substantial lessening of competition in the gas market. Approval of the joint marketing arrangement therefore requires that the compensating public benefits outweigh the competitive detriments.
Shell - Submissions on Commerce Commission's Draft Determination relating to Pohokura Joint Sales Authorisation Application, 10 June 2003 PDF (98 KB)
Genesis Comments on Draft Determination on Pohokura Application PDF (58 KB): The Commission has invited us to make comments on the draft determination by 9 June 2003.
Pohokura Authorisation Application - Submission by the Applicant In Response to the Commerce Commission Draft Determination PDF (290 KB): This submission is made by the Pohokura joint venture parties, OMV New Zealand Limited ("OMV"), Shell Exploration New Zealand Limited, Shell (Petroleum Mining) Company Limited (together "Shell") and Todd Petroleum Mining Company Limited ("Todd") (together the "applicants").

This submission addresses the relevant matters which the Commerce
Commission ("the Commission") must now address in order to affirm the
preliminary view that authorisation be granted to this application. This submission does not respond, at this time, to all matters raised in the Draft Determination. The applicant reserves the right to make further submissions at the conference on 1-3 July 2003 in response to submissions made by other interested parties.
CRA Final Report - Coordinated Marketing of Pohokura Gas - Response to Draft Determination PDF (642 KB): On 20 December 2002, the Pohokura joint venture parties filed an application
with the Commerce Commission to jointly market gas from the Pohokura field.
That application included a report by CRA analysing the efficiency of joint versus separate marketing. On 16 May 2003, the Commission issued its draft determination on that application. In essence, the draft determination proposes that joint marketing of Pohokura gas be authorised, subject to certain conditions.
The Pohokura joint venture parties have asked us to review and respond to the
economic issues raised by the Commission's draft determination, and the purpose
of this report is to address these matters.
Accordingly, much of this report reacts to the Commission's views, and is
structured in this way.
Agostini - A Critique of the Commerce Commision's Draft Determination on Pohokura Application PDF (683 KB): This report considers:
(a) The characteristics and features of the New Zealand gas industry that have some bearing on the feasibility of separate marketing.

(b) Comparisons between the New Zealand and Australian gas industries

(c) Experience in the Australian gas industry with attempts to establish separate marketing by regulatory means, and also where joint venturers have themselves attempted to initiate it.

(d) The conclusions reached by the COAG commissioned Energy Markets Review with regard to separate marketing in the Australian gas industry, and the implications of these conclusions for separate marketing in the New Zealand gas industry.
Westpac - Joint Marketing and Selling of Gas From the Pohokura Field PDF (119 KB): The New Zealand Commerce Commission ("NZCC") has issued a draft determination that would allow the joint marketing and selling of gas from the Pohokura field, but subject to a number of conditions. Todd Petroleum Mining ("Todd") has requested to indicate what implications these conditions would have on its ability to raise limited or non-recourse financing to assist with development of the Pohokura Field.
Schedule of Tasks to be Acheived to Bring the Pohokura Field into Production PDF (47 KB)
Separate Marketing Work Plan PDF (261 KB): Separate Marketing Work Plan
Pohokura Application - Joint Marketing Work Plan PDF (92 KB): Pohokura Application - Joint Marketing Work Plan
Petroleum Exploration Association of New Zealand, submission on draft determination on Pohokura PDF (211 KB): A number of issues are raised by the draft determination which will impact on all petroleum explorers and producers in New Zealand, and the future direction of the petroleum exploration and production industry in New Zealand generally. For this reason, PEANZ considers it appropriate to make this submission identifying and commenting on these matters.
Ministry Of Economic Development Submission On Commerce Commission's Draft Determination Relating To Pohokura Joint Marketing Authorisation Application PDF (46 KB): The purpose of this letter is to provide the Commission with some commercial
information, which may be relevant to the formulation of the conditions for an
authorisation.

Draft Determination

16/05/2003 (1 documents)

Pohokura Draft Determination PDF (687 KB): By letter dated 20 December 2002, Preussag Energie Gmbh ("Preussag"), Shell
Exploration New Zealand Limited and Shell (Petroleum Mining) Company
Limited ("Shell"); and Todd (Petroleum Mining Company) Limited ("Todd"),
applied to the Commerce Commission ("the Commission") under s 58(2) of the
Commerce Act 1986 ("the Act") for authorisation to enter into arrangements to
jointly market and sell gas produced from the Pohokura field ("the
Arrangement").

Initial Submissions

21/03/2003 (16 documents)

Indo-Pacific Energy Limited, 25 February 2003 - Re: Letter - Pohokura Joint Venture Application for Authorisation PDF (42 KB): Indo-Pacific believes that it is obvious that the Pohokura JV should be able
to jointly market the gas and work together to make this project work,
unhindered by CC rules.
Mighty River Power 26 February 2003 - Commerce Act 1986: Application for authorising of a restrictive trade practice - Preussag/Shell/Todd PDF (101 KB): Mighty River Power is a generator of electricity utilising a variety of fuel sources including gas and a retailer of both electricity and gas through the Mercury Energy brand.
Carter Holt Harvey - Commerce Act 1986: Application for authorization of a restrictive trade practice. Ref: J5659 Preussag/Shell/Todd PDF (64 KB): Carter Holt Harvey - Commerce Act 1986: Application for authorization of a restrictive trade practice. Ref: J5659 Preussag/Shell/Todd
Nova Gas Limited, 27 February 2003 - Submission re application for authorization of a restrictive trade practice - Preussag/Shell/Todd PDF (84 KB): As a distributor and retailer of gas in New Zealand Nova gas has a keen interest in the competitiveness of the upstream wholesale market.
Ballance Agri-Nutrients (Kapuni) Ltd - Submission on Application for Authorisation of a Rstrictive Trade Practice Pursuant to Section 58 of the Commerce Act 1986 PDF (155 KB): The submission is in response to the application by Preussag Energie GmbH, Shell Exploration New Zealand Limited/ Shell (Pertroleum Mining) Company Limited, and Todd (Petroleum Mining Company) Ltd, to joint market the gas from the Pohukura gas field. The submission is made by Ballance Agri-Nutrients (Kapuni) Ltd.
Analysis Of The Final Report By Charles River Associates On The Coordinated Marketing Of Pohokura Gas - by Tim Hazledine PDF (274 KB): This report, commissioned by Ballance Agri-Nutrients Ltd, provides an economic analysis of the arguments developed by Charles River Associates in support of Shell, Preussag, and Todd's application to the Commerce Commission to joint market the Pohokura natural gas field.
Genesis, 28 February 2003 - Initial Comments regarding Commerce Act 1986: Application for authoriation of a restrictive trade practice - Perussag / Shell / Todd PDF (192 KB): On the whole, Genesis does not oppose the concept of joint markettting if gas reserves. However, we would be concerne at any delay in the development of the Pohokura Field.
Major Electricity Users Group, 28 February 2003 - Submission on Pohokura JV parties s58 application PDF (108 KB): This submission comments on the application by the Pohokura field owners of 20 December 2002 for clearance to market and sale Pohokura gas jointly should the Commission decide the proposal is a restrictive trade practice.
New Zealand Refining Company, Submission on Pohokura PDF (123 KB): The Commerce Commission has received an application form Preussag Energie Gmbh, Todd (Petroleum Mining Company) Limited, Shell Exploration New Zealand Limited and Shell (Petroleum Mining) Company Limited (the JV parties) to enter into arrangements to jointly market and sell gas produced from the Pohokura field. NZRC, as consumer of natural gas and electricity, have an interest in this application.
Submission by NGC on the Application For Authorisation of a Restrictive Trade Practice by Preussag Energie Gmbh, Shell Exploration New Zealand Limited/Shell (Petroleum Mining) Limited and Todd (Petroleum Mining Company) Limited PDF (354 KB): NGC welcomes the opportunity to make a submission on the Pohokura Joint Venture's application for authorisation of a restrictive trade practice to jointly market and sell the gas produced from the field. The NGC Group of Companies is involved in the transportation and wholesaling of natural gas in New Zealand. This submission is made on behalf of the NGC Group of Companies by NGC Energy Limited.
NGC NZIER - Separate Marketing of Natural Gas Australian Experience PDF (205 KB): We have reviewed the Australian approach to separate marketing of gas in light of
the CRA report Coordinated Marketing of Pohokura Gas - An Economic Analysis, with particular reference to determinations made by the ACCC, and more recent developments under the umbrella of the Council of Australian Governments.
NGC NZIER - Monopoly gas marketing - The welfare effects of joint marketing PDF (203 KB): This note provides an indication of differences in the welfare between separate and joint marketing of Pohokura gas pattern.
Murray Robert Hawkes - Pacific Tiger Energy PDF (86 KB): Pacific Tiger Energy does not have any current interests in New Zealand's energy sector however as participant in the exploration sector and potential future investor I would offer the following comments and observations on the New Zealand gas industry and submission to the current for the commission's consideration.
Application By the Pohokura Joint Venture Parties For Authorisation of Joint Marketing Activities PDF (506 KB): Application By the Pohokura Joint Venture Parties For Authorisation of Joint Marketing Activities
Fletcher Challenge Forests, 18 March 2003 - Submission on Pohokura jv Parties' Application for Authorisation of a Restrictive Trade Practice PDF (59 KB): Fletcher Challenge Forests Limited has a significant investment in the New Zealand wood processing sector. Access to economic and reliable energy sources is important for our energy intensive operations such as wood and veneer drying. Similar access is vital for our customers who are involved in wood fibre processing - wood panel, pulp and paper production.
Indo-Pacific Energy Limited - Gas Production and Sales in Taranaki PDF (125 KB): Indo-Pacific Energy (IPE) wishes to make a submission on this subject in support of the proposition that gas produced from on- and offshore oil and gas fields in New Zealand should be marketed as a joint venture activity.

Application

20/12/2002 (3 documents)

Pohokura Application PDF (68 KB): An applic ation for authorisation of a restrictive trade practice is hereby
made in terms of section 58 of the Commerce Act 1986 ("the Act")
CRA - Coordinated Marketing of Pohokura Gas - An Economic Analysis PDF (1.8 MB): The Pohokura joint venture parties wish to develop the Pohokura field and
produce hydrocarbons from it. The field contains three primary product streams
(gas, condensate and LPGs), and physically, no one product can be extracted
without the others. Accordingly, prior to production, the joint venture parties
need to have in place some sort of disposal mechanism for each product.
Pohokura Application Table PDF (37 KB): Pohokura Application Table

Documents