NORTH SYDNEY, Australia – Pan Pacific Petroleum has agreed to sell its subsidiary WM Petroleum (WMP) to Kuala Lumpur-based Tamarind Classic Resources.
WMP has a 15% interest in theTui area oil fields offshore Taranaki.
Tamarind will pay $400,000 for PPP’s shares in WMP and on completion PPP will make a net payment to Tamarind of $5.45 million.
PPP will then inherit all the benefits and liabilities associated with the Tui area oil fields, including environmental, decommissioning, and abandonment obligations.
The company’s executive director Grant Worner said: “PPP believes Tui is nearing the end of its economic life and along with our joint venture partners the company had begun preparations to shut down operations within the next few years.
“We are pleased Tamarind are willing to introduce new ideas and ways of working to possibly prolong field life which would extend the assets’ involvement with the Taranaki region…”