Shell says it hopes to finalise talks over the sale of its New Zealand service stations and stake in New Zealand Refinery within the next month. Photo / Martin Sykes

Shell says it hopes to finalise talks over the sale of its New Zealand service stations and stake in New Zealand Refinery within the next month. Photo / Martin Sykes

New Zealanders could end up owning the petrol station and refining assets of Shell - the country's second largest petrol company - if a joint offer by the New Zealand Superannuation Fund and Infratil goes ahead.

Infratil's investment management business Morrison & Co yesterday said the two investors had paired up and were in exclusive negotiations with Shell over the possible acquisition which could be worth up to half a billion dollars.

Shell revealed in February this year it was reviewing its New Zealand business with a view to selling its service stations and 17 per cent stake in New Zealand Refining (NZR) - which owns Marsden Point - New Zealand's only oil refinery.

Speculation had centred around potential buyers ranging from United States refiner Valero to India's state-owned oil marketing firm Hindustan Petroleum and supermarket owners Progressive Enterprises and Foodstuffs as well as The Warehouse.

But the bid from Infratil and the $15 billion New Zealand Super Fund - a fund set up with taxpayers' money to help pay for the future costs of retiring Kiwis - has been welcomed by market commentators.

McDouall Stuart analyst John Kidd said it was healthy to see investor interest coming from New Zealand.

"These are high quality investors bidding for a high quality asset."

AA senior policy analyst Mark Stockdale said there had been a lot of speculation over the potential buyer but the joint bid by two New Zealand groups was positive.

Stockdale said it could also be good news for motorists because if the Shell stations were not sold to a competing oil company there was not likely to be a reduction in competition.

"It could just be a change in ownership but business as usual for motorists."

Retirement policy expert Michael Littlewood said it would be a major direct investment for the Super Fund.

The majority of the Super Fund's money is outsourced to fund managers who then invest it by buying shares in local companies.

But the fund has been under pressure from the Government to boost its local investment from around 20 per cent to 40 per cent.

Littlewood said the size of the Super Fund meant it was difficult for it to find assets to invest in locally without distorting the New Zealand market.