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Oil giant Shell is reviewing the ownership of all of its downstream businesses in New Zealand.
The company is intending to keep its extensive oil and gas exploration assets in New Zealand, which are mostly in Taranaki, but the company has everything else under review.
The businesses under review include its shareholding in New Zealand's only oil refinery at Marsden Point, a 36 per cent shareholding in construction firm Fulton and Hogan, and a 25 per cent holding in Loyalty New Zealand, operator of Flybuys.
Also under review is Shell's ownership of 230 petrol stations around New Zealand as well as its aviation, bitumen, chemicals, commercial fuel, distribution and supply, and marine business.
Collectively Shell's downstream businesses are believed to earn between $100 million and $150 million a year.
Divestment of some or all of the assets is possible.
News of the review came out care of a statement by New Zealand Refining Company (NZRC), operator of the Marsden Point refinery.
"NZRC has been informed today that Shell has commenced a strategic review to study the long-term ownership options of its downstream businesses in New Zealand," NZRC said in a statement to NZX.
"Divestment of some or all of the downstream businesses are options under consideration, but no decisions have been made."
The review was expected to take months.
Shell owns 17.14 per cent of NZRC.
Shell is one of four major oil companies who have a processing agreement with NZRC which gives them access to refinery capacity in line with their New Zealand market share.
- NZPA
