ExxonMobil may sell NZ service stations and terminals, report says

Australian media are reporting that ExxonMobile may sell its NZ business. Photo / Clive Crombie

Texas-based energy giant ExxonMobil - which is in the midst of laying off 2000 staff globally - could be weighing up its future in New Zealand, The Australian has reported.

The paper said ExxonMobil’s New Zealand assets could present a major opportunity for Australian private equity and infrastructure buyers.

A spokesperson for ExxonMobil NZ, approached by the Herald, said the company does not comment on market speculation.

The Australian said ExxonMobil was yet to place its New Zealand business on the market, “but the understanding is that investment bankers have pitched to the group about offloading assets in what would be a subscale market for Exxon, and it’s understood to being open to discussions”.

As a result, there’s an expectation that a sale of its New Zealand downstream energy business is a real possibility, the paper said.

ExxonMobil describes itself as one of the largest integrated fuels, lubricants and chemical companies in the world.

In New Zealand, the company owns the Wiri Oil Service business, which includes an inland terminal in South Auckland that is connected to the Marsden Point import terminal; a terminal in Mount Maunganui; ; plus terminals near Wellington, and in Christchurch and Bluff.

ExxonMobil New Zealand also has a network of over 150 company-owned service station sites operated by agents and dealer sites.

Private equity groups like Allegro, which bought some of Z Energy’s service stations following Ampol’s acquisition of the Kiwi business, could be paying attention, The Australian said.

International news agency Bloomberg said ExxonMobil plans to cut about 2000 jobs globally as the company consolidates smaller offices into regional hubs as part of its long-term restructuring plan.

Chevron Corp, ConocoPhillips and BP Plc are among major oil companies to have also announced thousands of job cuts in recent months as crude prices tumbled this year in response to increased supplies from Opec and its allies, Bloomberg said.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.