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Shell finalises $695m sale of NZ downstream assets to Infratil
8 April 2010 - Royal Dutch Shell plc has finalised the sale of its downstream assets in New Zealand to a local consortium of infrastructure company Infratil and Guardians of New Zealand Superannuation Fund for a cash payment of NZ$696.5 million.
Sources: Shell, Intratil and Lindsay Clark
Shell will however retain its upstream gas and oil assets in New Zealand. Shell owns 48% of the largest producing gas and condensate field Pohokura, 83.75% of the Maui field, 50% of the Kapuni field, and is 50% owner of Shell Todd Oil Services.
Shell’s downstream New Zealand assets include retail (220 petrol stations), commercial fuels, bitumen, aviation, marine, chemicals, supply and distribution businesses, a 17% share in New Zealand’s only refinery NZ Refining Company (17%) and Shell’s 25% shareholdings in Loyalty New Zealand which operates Fly-Buys cards.
The Wellington-based Infratil and the NZ Superannuation Fund (established by the Government in 2003 and now with funds of almost $16 billion) said the new jointly-owned business would trade under the name of Greenstone Energy Ltd. The change of ownership took effect from April 1.
The consortium has signed an agreement for Shell to continue to provide crude oil and refined products. The parties have also entered into a trademark licensing agreement which entitles the consortium to operate retail service stations under the Shell brand.
Royal Dutch Shell downstream director Mark Williams said: “The decision to sell our New Zealand downstream business follows a comprehensive strategic review and fits with our drive to simplify our global downstream portfolio and concentrate on larger, integrated assets in growth markets.”
Rob Jager, country chair of Shell New Zealand, said: “Having built up a strong and high quality business providing outstanding products and service to New Zealanders for close to 100 years, we are very pleased to have concluded our review with a sale to a buyer with strong New Zealand connections.”
Shell staff would transfer to the new company and Shell continuing to supply products and the retail brand, there will be a high level of continuity for customers following the change in ownership. We are now focused on ensuring that we manage the smooth transition of the business,” said Mr Jager.
