Wellington, April 27 NZPA - The outstanding performance of the Tui oilfield in New Zealand has allowed Australian company Pan Pacific Petroleum NL to pay a $A18 ($NZ23.01) million special dividend to shareholders.

The dividend will be a windfall for New Zealand Oil and Gas, which owns about 88 million Pan Pacific shares, giving it about $A2.6m.

Pan Pacific will pay a special dividend of 3 cents to shareholders on its register at the close of business on May 6. Payment is on June 26.

The company said the special dividend was a recognition of the performance of Tui, which produced more oil at much higher prices than envisaged.

"The distribution will not have any significant effect on the company's stated intention to compete for new exploration and production opportunities, and to build a sustainable revenue position," Pan Pacific said.

Tui is located 50kms off the coast of Taranaki. Production began in July 2007 and in 2008 the proved and probable reserves were upgraded.