Agreement has been reached between New Zealand Oil & Gas and Genesis Energy over the payment of overriding royalties from the Kupe oil and gas field.
The agreement will increase New Zealand Oil & Gas net profit after tax for the 2013-14 financial year by $5 million. The impact in the 2013-14 financial year will reflect payments relating to that financial year as well as for prior years. New Zealand Oil & Gas expects its future revenue from Kupe will increase by $1-2 million each year.
The overriding royalty has been under negotiation for several years. Negotiations are continuing with another Kupe partner, Origin Energy.