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Genesis Energy to keep stake in Kupe gas field

Photo: Supplied The power company, which is 51 percent owned by the government, announced early this year it was weighing up its ownership in the field, as well as opportunities for further development, including drilling and further exploration. Kupe remains a high-quality gas asset and will continue to play a key role in New Zealand s transition to a lower carbon future, the company said in a brief announcement to the market. The review considered a number of areas, including the returns and risks of a potential drilling programme, the optimal capital structure for Genesis and whether there are better capital investment opportunities.

Differing valuations underscore Genesis keeping Kupe

CEO says oil and gas field’s future production was the key market test. Genesis Energy is better off keeping two hands on a minority stake in the Kupe oil and gas field than selling it under recent offers undervaluing the asset’s future production,   Choose your best value subscription option here. Already have an account? Login

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