Shell today announced the sale of its interests in the Kaimiro oil and gas field assets, together with the sale of a subsidiary company that owns part of the Ngatoro oil and gas field in Taranaki, to New Zealand owned Greymouth Petroleum Limited, for an undisclosed sum.

Interests in the Kaimiro and Ngatoro fields were formerly owned by Fletcher Challenge Energy (FCE), and are being sold as part of Shell's commitment to divest certain assets when it acquired FCE in 2001.

Managing Director of Shell (Petroleum Mining) and Shell's New Zealand Chairman Lloyd Taylor said Shell was delighted to sell the assets to Greymouth Petroleum, and thereby support the development of another New Zealand energy player.

"With the addition of the former FCE interests in the Kaimiro and Ngatoro fields, Greymouth have acquired producing interests that will see them become a significant player in New Zealand's energy future.

"It is particularly satisfying to sell these former FCE assets to a New Zealand owned and operated company. Greymouth's Chief Operating Officer, John Sturgess has worked previously with both Shell and FCE and has a sound knowledge of the New Zealand energy sector. We are happy to have been able to facilitate the creation of this new, independent New Zealand energy business," Dr Taylor said.

Final settlement for the sale of Kaimiro and Ngatoro interests will take place once regulatory formalities have been completed.

Shell expects to announce further divestments, in line with the conditions laid down by the Commerce Commission at the time Shell acquired FCE, in the near future.