New Zealand: Shell Confirms Sales of Fuel Distribution Business

Shell has confirmed the potential sale of its downstream business to local media.

PetrolWorld reported in February of this year the review carried out by Shell and the appointment of UBS to find a buyer. With the exception of its upstream business mainly in Taranaki, and a 36 per cent stake in Construction Company Fulton and Hogan, the rest of its business will be sold.

This includes its 17 per cent shareholding in New Zealand's only oil refinery at Marsden Point, a 25 per cent holding in Loyalty New Zealand, operator of Flybuys and its network of service stations, as well its aviation, bitumen, chemicals, commercial fuel, distribution and supply, and marine business.

UBS has been appointed by Shell with the aim to find formal expressions of interest for the downstream business. No buyers have been identified at this point. Early indications of interest were hoped to be received by the company by early August. Shell, which received the directive for the review had come from the international head office in the Netherlands, reviewed its businesses around the world. “The company was focusing on downstream activities in developing markets, not mature markets such as New Zealand,” said the spokeswoman.

PetrolWorld 130509