Page 10 - AsianOil Week 04 2022

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New Zealand passes changes

to decommissioning rules

POLICY THE government of New Zealand has passed the “The amendments to the Crown Minerals
Crown Minerals (Decommissioning and Other Act 1991 address a fundamental gap in the leg-
Matters) Amendment Bill. While the legislation islation to provide greater protection in respect
has yet to be finalised, it is expected to change the to decommissioning obligations,” New Zealand
decommissioning obligations of oil and gas per- Minister of Energy and Resources Megan Woods
mit holders according to Cue Energy, a partner said in December, after the legislation was given
in the Maari and Manaia fields. Royal assent.
Under the updated legislation, operators of After the legislation was introduced, Energy
oil and gas fields will be required by law to fund Resources Aotearoa, a New Zealand industry
the decommissioning of their projects once they group, expressed concern over its impact. In
near the end of their productive life. If a permit is November, the group described the proposals
taken over by a different oil and gas company, the on decommissioning as “overkill” despite having
responsibility to decommission a site will return “good intentions”.
to the previous owner if the buyer is unable to The update to the rules comes as the con-
fulfil the obligation. trolling stake in the Maari field is in the pro-
The New Zealand government moved to cess of changing hands. Cue said in a January
change the rules after taxpayers were left to foot investor presentation that the regulatory
the rising bill for decommissioning the Tui field processes for Jadestone Energy to acquire the
offshore Taranaki. The field was abandoned 69% stake in Maari from OMV were contin-
in 2019 following the collapse of Tamarind uing. The field is nearing the end of its pro-
Taranaki. Last year, the government said the ductive life and a change in New Zealand’s
costs of decommissioning the field had more legislation could have implications for its
than doubled to NZD349 ($228mn). decommissioning.™

NEWS IN BRIEF

SOUTHEAST ASIA the Myanma Oil and Gas Enterprise (MOGE). EAST ASIA
The non-cash expense associated with the
Woodside to withdraw from decision to withdraw from Blocks A-6 and Shell starts up hydrogen
AD-1 is expected to impact 2021 net profit
Myanmar after tax (NPAT) by approximately US$138 electrolyser in China with
million. This is in addition to the US$71
Woodside has decided to withdraw from its million exploration and evaluation expense 20 MW production capacity
interests in Myanmar. for Block AD-7 disclosed in Woodside’s
Woodside has operated in Myanmar Fourth Quarter Report on 20 January 2022. Shell has started operations at the power-to-
since 2013, conducting multiple exploration These costs will be excluded from underlying hydrogen electrolyser in Zhangjiakou, a joint
and drilling campaigns. It holds a 40% NPAT for the purposes of calculating the venture between Shell (China) Limited and
participating interest in the A-6 Joint Venture dividend. Zhangjiakou City Transport Construction
as joint operator and participating interests in Woodside CEO Meg O’Neill said while Investment Holding Group Co. Ltd.
exploration permits AD-1 and AD-8. Woodside had hoped to develop the A-6 gas One of the world’s largest hydrogen
Woodside had previously announced resources with its joint venture participants electrolysers¹ has today started production
that it was placing all Myanmar business and deliver much-needed energy to the of green hydrogen in Zhangjiakou, Hebei
decisions under review following the State of Myanmar people, there was no longer a viable Province, China. The electrolyser will provide
Emergency declared in February 2021 and the option for Woodside to continue its activities. about half of the total green hydrogen supply
deteriorating human rights situation in the “Woodside has been a responsible foreign for fuel cell vehicles at the Zhangjiakou
country. investor in Myanmar since 2013 with our competition zone during the Winter Olympic
In 2021 Woodside completed the conduct guided by the UN Guiding Principles Games, set to begin on February 4, 2022.
relinquishment of exploration permits on Business and Human Rights and other “The electrolyser is the largest in our
covering offshore Blocks AD-2, AD-5 and relevant international standards. “Given the portfolio to date and is in line with Shell’s
A-4 and is in the process of withdrawing from ongoing situation in Myanmar we can no Powering Progress strategy, which includes
Blocks AD-6, AD-7 and A-7. longer contemplate Woodside’s participation plans to build on our leading position in
Woodside will now commence in the development of the A-6 gas resources, hydrogen,” said Wael Sawan, Shell’s Integrated
arrangements to formally exit Blocks AD-1 nor other future activities in-country,” she Gas, Renewable and Energy Solutions
and AD-8, the A-6 Joint Venture and the A-6 said. Director. “We see opportunities across the
production sharing contract (PSC) held with WOODSIDE, January 27, 2022 hydrogen supply chain in China, including its

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