DecisionConsent granted
Section 12(b) Overseas Investment Act 2005
Decision date4 December 2012
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 100% of the shares of Opunake Hydro Limited which owns or controls a leasehold interest in 5.008 hectares of land at Domett Street, Opunake, South Taranaki.
Consideration$6,000,000
ApplicantTAG Oil Ltd.
Canada Public (95.17%)
United States Public (4.49%)
Various (0.34%)
VendorOpunake Hydro Holdings Limited
Karo Interests Limited Partnership, New Zealand (80%)
DT Katere Holdings Limited, New Zealand (10%)
Kevin Johnson, New Zealand (10%)
Background

TAG is a Canadian oil and gas exploration and production company with operations focused exclusively in New Zealand. It is seeking to expand its operations into electricity generation and retailing. To this end, it intends to acquire up to 100% of the ordinary shares in Opunake Hydro Limited ("OHL"). OHL owns and operates the Opunake hydro electric power station. As a result of the investment, OHL will acquire and install several gas fired generators. The generators will provide OHL with an additional and more stable supply of energy. It will also provide TAG with an additional market for its gas.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'benefit to New Zealand' criterion was satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(i) – Creation of jobs
17(2)(a)(iv) – Added market competition
17(2)(a)(v) – Additional investment for development purposes

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(e) – Previous investments
28(f) – Advance significant government policy or strategy
28(g) – Enhance the viability of other investments
28(i) – Economic interests
28(j) – Mitigating factor

More informationDavid J Coull
Bell Gully
PO Box 1291
WELLINGTON