Update on sale of decommissioned assets

Channel Infrastructure NZ Limited (NZX:CHI) confirms it has granted a further extension to Seadra Energy Inc’s (Seadra) option to purchase certain decommissioned assets from the hydrocracking complex, to enable Seadra to complete detailed due diligence work to assess the purchase and removal of the permanently decommissioned assets. The extension has been granted to 30 September 2024 in exchange for an additional payment to Channel of US$200,000.

Should Seadra choose to exercise the option, Seadra will pay Channel US$33.875 million (including the option payments).

Over the course of the past 12 months, Seadra has invested significant time and resources in its ongoing due diligence process, including undertaking detailed engineering, feasibility, and environmental studies. Seadra has also submitted to Channel detailed dismantling and demolition plans, health and safety plans, and occupational hygiene management plans, to prepare for the safe dismantling of the assets. This has included obtaining information from a range of third parties, which has delayed the completion of some of their due diligence work.

Channel Infrastructure CEO, Rob Buchanan says,
“Seadra has spent a lot of time assessing the options for these assets, so it makes sense for us to provide them additional time to complete their work. Should Seadra Energy choose to proceed with the purchase, this offers an opportunity for Channel to continue work on redevelopment of our Marsden Point site to deliver on the future growth opportunities we have ahead. This includes opportunities to restore fuel manufacturing to Marsden Point with our potential eSAF project, which would bring both jobs and investment to Northland as we work to build an energy hub at Marsden Point for New Zealand.”

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Authorised by:
Chris Bougen
General Counsel and Company Secretary

Investor Relations contact:
Anna Bonney
[email protected]

Media contact:
Laura Malcolm
[email protected]

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Announcement PDF