Royal Dutch Shell Plc (NYSE: RDS.A) completed the sale of its remaining upstream assets in New Zealand to Austria's OMV AG for $578 million, the companies said Dec. 28.
The sale, which is part of Shell’s three-year program to dispose of $30 billion by the end of 2018, included the company’s Māui, Pohokura and Tank Farm assets in New Zealand. Additionally, OMV acquired Shell’s interest in and operatorship of the Great South Basin venture, which was subject to a separate agreement. Shell Taranaki and Shell New Zealand employees have now also become a part of OMV New Zealand.
“We are proud of having worked in New Zealand for more than 100 years and completion of the sale to OMV marks an important milestone in the company’s history,” said Zoe Yujnovich executive vice president of Shell Australia and New Zealand.
Pohokura, which OMV had already been a partner in as well as Māui, is the largest gas producing field in New Zealand. OMV will now assume operatorship of both Pohokura and Māui joint ventures.
“This acquisition is an important step to develop Australasia into a core region in line with our new strategy,” OMV CEO Rainer Seele said in a statement following the announcement of the acquisition in March 2018.
Activist investor Elliott Management offered to buy oil and gas producer QEP Resources in an all-cash deal valued at $2.07 billion, saying that the company is "deeply undervalued."
Overall, 2018 was the Year of Consolidation as several E&Ps agreed to merge throughout the U.S., including inside and outside the prolific Permian Basin.
Expect plenty of capital, plenty of volatility, plenty of shifts in investor strategies—and plenty of unfolding stories to track as the new year progresses.