Petrocorp denied initial clearance

Press, 18 February 1989, Page 19

Petrocorp denied initial clearance

The Commerce Commission has declined to give Petrocorp initial clearance to buy the Crown interests in the Maui gas contracts and the Synthetic Fuels Corporation. Petrocorp (the Petroleum Corporation of New Zealand) is owned by Fletcher Challenge.

The Commission’s deputy chairman, Mr Berrie Tucker, said the Commission was not satisfied that the proposal would not result in the acquisition or strengthening of a dominant position in any market. Mr Tucker said Petrocorp had submitted the proposal on January 20 after it reached a memorandum of understanding with the Crown. However, the Commission had not yet received full details of the manner in which the sale and transfer would occur.

The Commission required this and other information before it would be able to assess the potential impact of the

proposal on various liquid fuels, gas supply, and petrochemical markets, Mr Tucker said. Particularly important was the effect it might have, with the deregulation of the gas industry.

The Commission was keen to receive submissions on all these matters from interested parties to reach a final determination. This must be reached by June 16. Petrocorp’s managing director, Mr Bill Falconer, said it was "totally expected” that the commerce Commission would roll over the application by Petrocorp for approval.

“These are difficult transactions, complicated further by the prospect of deregulation of the gas sector. We fully understand that the Commission needs time to consider them in detail and we remain confident of a favourable decision once the Commission has had the opportunity of reviewing all the information.” Meanwhile Petrocorp

Exploration Limited has been awarded an offshore prospecting contract in the Philippines in a joint venture. The survey and exploration contract for the north-west Palawan/ Busuanga prospect, west of Palawan Island, was assigned to the joint venture by the Philippines Government. It is Petrocorp’s first exploration venture in the Phillipines. Work in the newlyawarded block will begin shortly with a view to drilling the fist well within the next 18 months. ■ The block is in the

The survey and exploration contract for the north-west Palawan/ Busuanga prospect, west of Palawan Island, was assigned to the joint venture by the Philippines Government.

It is Petrocorp’s first exploration venture in the Phillipines. Work in the newlyawarded block will begin shortly a view to drilling the fist well within the next 18 months. ■ The block is in the Palawan Basin, and surrounds producing fields which yield about 7000 barrels of crude oil a day.

The joint venture has nine participants, five of them Filipino companies.

The contract area has been divided into two blocks. Petrocorp holds a 31 per cent interest in one block and 27.3 per cent in the other.