Austrian energy company OMV has agreed with Singapore-based Jadestone Energy to again extend the long stop date on the US$50 million sale of its interest in the Maari oilfield offshore New Zealand due to uncertainty over local government approval.
OMV and Jadestone in November 2019 executed a sale and purchase agreement for OMV's 69% interest in Maari.
The pair since then have extended the long stop date several times, and the latest extension is valid until 31 December 2021, said Jadestone.
"Both OMV NZ and the company continue to work to satisfy the remaining outstanding conditions and to complete the transaction. However, and as previously disclosed, there is ongoing uncertainty in the timing of New Zealand government approval," said Jadestone.
"As a result, further updates on the Maari acquisition will only be made in the event that the transaction completes, or there is a material change in the status of the transaction."
As at 31 December 2020, the field holds proven plus probable audited reserves of 10.6 million barrels of oil net to Jadestone’s proposed 69% interest.
The effective date of the acquisition is 1 January 2019, so the entire economic benefit from Maari barrels produced from the effective date up to the eventual closing date will accrue to Jadestone.
In the quarter ending 30 June 2021, Maari gross production averaged 5300 barrels per day of oil, according to joint venture partner Horizon Oil, which owns 26% of the field.
The field's cash operating costs for the 2021 financial year were US$24.94 per barrel of produced oil, inclusive of the costs of workovers, said Horizon.
Cue Energy owns the remaining 5% equity.