Yesterday the High Court rejected Todd's application for an interim injunction to stop Shell and Pohokura partner OMV voting to replace present operator Shell Todd Oil Services. Todd says it intends appealing that decision.

The parties are also taking a dispute over inconsistencies in the Pohokura joint venture agreement and the accompanying technical services agreement to a separate trial.

Todd Energy wants the high court to change the JVA to rectify alleged “inconsistencies”.

The High Court yesterday told the parties to try to resolve all interlocutory matters, including a timetable for exchange of submissions, by the second week of September.

Shell NZ believes it can add substantial value to the Taranaki oil and gas assets in which it has major stakes – Maui, Kapuni and Pohokura - by moving away from the STOS service company structure.

Shell NZ EP commercial manager Ajit Bansal has said that implementing Shell’s proposed changes would ensure the Pohokura and Maui work programs were met.

Shell NZ holds 82.75% of Maui, 48% of Pohukura and 50% of Kapuni. Todd holds a 6.25% of Maui, 26% of Pohokura and 50% of Kapuni. OMV holds 10% of Maui and 26% of Pohokura. Shell and Todd jointly own the unincorporated STOS organisation that operates Maui, Pohokura, Kapuni, and McKee and Mangahewa (for Todd only) with no equity.

Shell and OMV earlier told the High Court they intended to remove STOS as operator, which was allowed under the amended Pohokura JVA if partners holding a combined 70% of more interest voted to do so.

Todd had argued that clause 9 of the technical services agreement stated such a decision had to be unanimous and that all parties had intended this clause to be the operative one.

But Justice Fogarty rejected that argument, saying there was no evidence the parties intended clause 9 to prevail over the 70% clause in the Pohokura JVA.