Overseas investment decision for case 200810055 - Origin Energy Limited

1. property being the business and assets of Swift Energy New Zealand Limited, Southern Petroleum (New Zealand) Exploration Limited and Swift Energy New Zealand Holdings Limited; and
2. an interest in land which, either alone or together with any associated land of that type, is or includes non-urban land and exceeds 5 hectares in area.

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment.

The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Background to the Investment:
Swift Energy Company, a company incorporated in the United States of America, having reviewed its position in the New Zealand market conducted a sales process to potentially sell some or all of its New Zealand assets which are owned by its subsidiaries Swift Energy New Zealand Limited (SENZ), Southern Petroleum (New Zealand) Exploration Limited (Southern Petroleum) and Swift Energy New Zealand Holdings Limited (SENZ Holdings). The assets include gas producing and exploration properties including the Rimu, Kauri and Manutahi fields and the Tariki, Ahuroa, Waihapa and Ngaere fields which make up the TAWN complex, extensive gas processing and pipeline infrastructure and a subsurface gas storage project opportunity, all located in the Taranaki region.

Outline of the Investment:
Origin Energy is the successful bidder to acquire all of the assets of SENZ, Southern Petroleum and SENZ Holdings. The acquisition of the existing productive assets and the development potential of other assets is an attractive prospect to an industry participant such as Origin with the expertise and financial backing to consolidate its current position and realise the potential of the development opportunities of the assets.

Rationale for the Investment:
With Origin's extensive experience in the exploration and production of natural gas and already strong ties to New Zealand through its investment in the Kupe Gas Project and its interest in Contact Energy Limited (Contact Energy), Origin is keen to expand its New Zealand operations. Origin has the technical and financial capacity to continue the operations of the SENZ and Southern Petroleum assets and where feasible, expand on those operations.

The proposed overseas investment is or is likely to benefit New Zealand (or any part of it or group of New Zealanders) having regard to the following factors:

Overseas Investment Act 2005:
s17(2)(a)(i) - Creation/retention of jobs;
s17(2)(a)(iv) - Added market competition, greater efficiency or productivity, or enhanced domestic services;
s17(2)(a)(v) - Additional investment for development purposes;
s17(2)(f) - Offer to sell riverbed to the Crown.

Overseas Investment Regulations 2005:
r28(c) - Adversely affect image, trade, or international relations;
r28(e) - Previous investments; and
r28(f) - Advance significant Government policy/strategy.