Genesis Energy (ASX:GNE) has acquired New Zealand Oil & Gas’ 15% share of the Kupe Joint Venture for $168 million in cash. The Kupe oil and gas field is located in the offshore Tarankari basin, near the north island of NZ.
Genesis says this acquisition strengthens its integrated fuels strategy, and will create greater fuel supply flexibility, and greater influence in the joint venture (adding to its existing 31% stake).
This transaction is subject to approval by special resolution of New Zealand Oil & Gas’ shareholders, and the special meeting is expected to take place on 16 December.
The company says its increased ownership will give it access to around 160,000 extra barrels of oil and 13,000 additional tonnes of liquefied petroleum gas each year. And taking into account funding and transaction costs, the company estimates its NPAT will increase by $2 million.
Genesis Energy reported a net profit of $175.6 million at 30 June 2016.