Contact Energy sells Mokai geothermal rights

Wellington, New Zealand-based Contact Energy announced that would sell its rights to the Mokai geothermal resources for $20 million to New Zealand government-owned Mighty River Power and the Tuaropaki Trust.

Contact Energy said Mighty River would also hand over some rights in relation to natural gas development as part of the agreement.

The company said the small, 1,200 hectare Mokai field was not a core part of its geothermal investment strategy, which is focused on developing the geothermal resources at Te Mihi and Tauhara.

"Mighty River Power and the Tuaropaki Trust have developed a successful partnership approach to sustainable development of the geothermal resource at Mokai," said Doug Heffernan, CEO of Mighty River.

"The acquisition of this additional land allows an integrated approach to be taken in the further development of the resource for the benefit of both parties."

Development of Mokai would have required significant resources, according to Contact Energy, which said that Mighty River and Tuaropaki, adjacent landowners to the Mokai field, are better placed to exploit the field's potential.

Mighty River and Tuaropaki jointly own a 112 megawatt power station and connecting transmission line on the Mokai field.

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