Origin Energy is to sell gas fields in New Zealand's Taranaki region to New Zealand Energy Corp (NZEC) for about $42 million.
The sale consideration includes a five per cent gross overriding royalty payable to Origin on future production from the Tariki, Ahuroa, Waihapa and Ngaere (TAWN) fields.
As part of the agreement, Origin will maintain an option for a period of 10 years to use eight wells within the TAWN fields for gas storage.
NZEC will fund a development well in the Waihapa licence and Origin will retain 50 per cent production rights from that well.
The sale, which does not include Contact Energy's Ahuroa gas storage permit
9 News
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