ExxonMobil moves continue petrol station shake-up

DOWNSTREAM: ExxonMobil is continuing to investigate the sale of its New Zealand distribution and retailing, or downstream, business.

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A shake-up in petrol station ownership looks set to continue as global oil giant ExxonMobil continues to investigate the potential sale of its New Zealand distribution and retailing, or downstream, business.

BusinessDay understands two parties are looking at ExxonMobil's downstream operations, which include 183 petrol stations and a 19.2 per cent stake in the country's only oil refinery, the New Zealand Refining Company.

The two are said to have oil, fuel and retail expertise. It is understood the parties are working through complex working capital and structural issues. Sources say any buyer will need to establish working capital loan facilities with banks worth hundreds of millions of dollars.

This is required because of fluctuations in inventory arising from the length of time it can take to bring oil to New Zealand and eventually sell refined products to customers.

ExxonMobil spokesman Alan Bailey declined to comment.

Meanwhile, Mike Bennetts, the former BP executive lined up by Infratil and the New Zealand Superannuation Fund to run Shell's downstream business, said yesterday that the target completion date for the acquisition was April 1. Infratil and the Super Fund are understood to have established a working capital facility as part of their deal to buy Shell's operations.

Mr Bennetts said the new owners would look to bring jobs to New Zealand from overseas if the acquisition is completed as expected.

This could include customer service call centre roles and "knowledge-based" asset management and marketing jobs.

He would not be drawn on how many new jobs could be created but said Shell has 15 staff at a Manila call centre focused on New Zealand.

There were also at least two knowledge-based jobs that could be shifted to New Zealand. Mr Bennetts also signalled plans for new infrastructure investment, potentially in import terminals.

"We'd look to make appropriate investments where opportunities arise," he said.

Separately, Chevron spokeswoman Sharon Buckland said there had been no suggestion that a shake-up of the group's global downstream operations would include any changes in New Zealand.

Chevron announced plans this week to lay off 2000 staff globally and sell some downstream assets.

Chevron's local business includes about 180 Caltex petrol stations and a 13 per cent stake in the New Zealand Refining Company.

- © Fairfax NZ News