Newly created subsidiary Todd Shipping has chartered the tanker Savannah for an initial two-year period to handle all its shipments of Pohokura condensate (Todd Energy owns 26% of the near-shore Pohokura field) and all crude from the onshore McKee field and condensate from the nearby Mangahewa gas field (Todd holds a 100% interest).

The 28,433-tonne Savannah, owned by Liberian company Galter Shipping but operated by Singapore’s Tanker Pacific, is loading about 150,000 barrels of Pohokura condensate and McKee crude, destined for Sydney.

Todd Energy commercial manager Mike Selvadurai said a shortage of suitable shipping in New Zealand, and the decision of Todd to market and sell its own share of Pohokura gas and condensate separately, had contributed to the decision to set up Todd Shipping.

“Essentially, before there was only the Shell ship, the Resolve, available and Todd wanted to maximise its involvement in, and the value of, its products,” Selvadurai told PetroleumNews.net in New Plymouth this morning.

“As well, the New Zealand Refining Company cannot now take all of our product; only limited parcels can be processed at their Marsden Point refinery.

“And Australia has some good market opportunities for New Zealand’s light oil and sweet waxy crudes.”

Selvadurai said there would also be opportunities for other players to ship product from other fields – such as the southern offshore Taranaki Kupe gas-condensate field – in the Savannah.

Todd would negotiate with players, such as Austral Pacific Energy, regarding the storage, marketing and transportation of their oil, he added.

Austral chief executive Rick Webber earlier this week told PNN that his company was investigating several alternatives to increase the available storage at or near Port Taranaki, New Plymouth, as part of Austral and partner TAG Oil’s proposed upgraded development of their small onshore Taranaki Cheal oil field.

Production is presently limited to about 500 barrels of oil per day (bopd).

Selvadurai said the Savannah would also be able to handle Todd Energy’s 16% share of Maari crude oil once that offshore Taranaki field came onstream about April 2008.

Singapore-headquartered Tanker Pacific will also operate the Maari FPSO Raroa on behalf of operator Austrian firm OMV, Todd and Australian partners Horizon Oil and Cue Energy Resources.

Pohokura presently produces about 15,000-16,000 barrels per day of condensate.

McKee produces about 1200bpd of crude while Maari’s gross initial oil production rate is expected to be about 35,000bpd.