Mobil to sell New Zealand petrol stations

Half the country's petrol stations are on the block with Exxon Mobil joining Shell in seeking to sell its retail outlets here.

The move, which Mobil is not commenting on, mirrors that happening in other mature markets around the world where oil majors are leaving fuel retailing to concentrate on exploration, refining and distribution.

While one source says both being up for sale at the same time could swamp the market, there are indications each case is making progress.

Just as Shell is doing, Mobil is understood to be retaining its stake in its upstream exploration, in its case in the Great South Basin fields but is looking to quit its 19 per cent shareholding in New Zealand Refining.

Mobil has had links with New Zealand for more than a century and has around 20 per cent of the total market including fuel and other retailing. The New Zealand businesses generates annual revenue of between $85 million and $100 million.

Spokesman Alan Bailey said he would not comment on "speculation" but it was "prudent for any company to look at its business on an ongoing basis and we do so within Exxon Mobil".

The company had worked in the past few years to restructure its business in New Zealand to make it more competitive.

"That continues to be our focus. When and if there are things [to] tell our stakeholders then we will certainly tell them - that's it."

It is understood Goldman Sachs JB Were is advising Mobil on the sale.

Energy Minister Gerry Brownlee said he was not concerned about both majors quitting their retail presence at the same time because there was buying interest.

"My understanding is there are other parties interested in both those networks - I think that's a pretty positive sign. We're in a recession, these are large assets and anyone voluntarily coming in to pitch a price at the market is showing a degree of confidence in the long-term future of New Zealand," he said.

"The process that both companies appear to be going through is slow and deliberate, there's no suggestion there's any fire sale here, far from it."

India's state-owned oil marketing firm Hindustan Petroleum Corp (HPCL) has been reported as a possible buyer of Shell. Other potential buyers range from France's Total to Progressive Enterprises.

In February Shell said it was moving towards selling its service stations its 17 per cent shareholding in NZ refinery, a 25 per cent holding in the operator of Flybuys and its aviation, bitumen, chemicals, commercial fuel, distribution and supply and marine business.

A spokeswoman yesterday said any sale process should be completed by the end of the year.

When Shell announced it was looking to sell it told NZ Refining but that company yesterday said it has heard nothing from Mobil, whose stake is worth more than $330 million.

Company secretary Dennis Martin said it did not see any exit by Mobil as a threat as the refinery remained the best source of supply for the country but combined with Shell's moves, it did create some uncertainty.