Shell to exit New Zealand downstream

By OGJ editors
HOUSTON, Mar. 29
-- Royal Dutch Shell PLC, after announcing plans to trim its refining and marketing operations, has reported an agreement to sell its downstream businesses in New Zealand.

Shell will sell its 17.1% interest in the 104,000-b/d refinery at Marsden Point and its network of more than 220 retail outlets to Aotea Energy Ltd., a consortium of Infratil Ltd. and the Guardians of New Zealand Superannuation. The consortium will manage the interest through its operating company, Greenstone Energy Ltd.

Shell is to receive a cash payment of $696.5 million (NZ) with a working capital adjustment.

Earlier this month, Shell executives disclosed plans to cut worldwide refining capacity by 15% and retail operations by 35% (OGJ Online, Mar. 22, 2009).

Marsden Point, owned by New Zealand Refining Co., is the country’s only refinery. Other major shareholders in New Zealand Refining are BP PLC, Chevron Corp., ExxonMobil Corp., and Emerald Capital.

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