18 Jul 2003

Mobil wants independent valuation before selling Samoa assets to Government

3:36 pm on 18 July 2003

Mobil Oil has called in a valuer from New Zealand to review its assets in Samoa, because they do not agree with the Government over its value.

The move comes after the Samoa Government passed legislation legalising a takeover of Mobil's assets, if negotiations for their purchase remain stalled over the price.

The Government takeover is scheduled for August 1st, when Shell's contract to supply the country comes into effect.

The takeover would allow Shell to use the facilities while the government continued negotiations with Mobil.

The Finance minister, Misa Telefoni, says this would prevent in interuption in the fuel supply.

Shell won the supply contract for the next five years, despite Mobil being the provider for 50 years.