Reassessment to Continue At New Zealand Maui Offshore Natural Gas Field

The process of reassessing reserves in New Zealand's Maui offshore natural gas and condensate field can continue following the withdrawal of an application for an injunction by a major user of Maui's output, says Natural Gas Corp. Under the "re-determination process", a new reserves figure for the field will be agreed and parties which have a contractual right to receive natural gas from the field will have their entitlements adjusted.

Methanol producer Methanex New Zealand Ltd., which is the biggest single user of Maui gas, is understood to fear its entitlement could be reduced. Natural Gas Corp. said that although Methanex has withdrawn its application for an interim injunction against the re-determination process, it is still seeking a hearing in August of its claim that the government and the Maui mining companies haven't provided sufficient information on the field's reserves.

Shell New Zealand, a unit of Royal Dutch/Shell Group has majority control of the Maui field. The latest estimate of developed and remaining Maui reserves is 3,800 petajoules. The original Maui contract was for the field to supply 4,085 PJ between 1979 and 2009.