17 Mar 2017

BP cutting stake in Refining NZ

12:32 pm on 17 March 2017

The biggest shareholder in the Marsden Point oil refinery company plans to sell part of its stake.

Marsden Point oil refinery

Marsden Point oil refinery. Photo: 123rf.com

The British oil company BP said it plans to sell up to 11 percent of its shares in Refining New Zealand, which would reduce its stake to just over 10 percent.

The oil company has appointed the brokers Deutsche Craigs to find a buyer for about a half of its holding in Refining New Zealand.

BP said the broker had been in contact with certain potential investors, but no sales had taken place yet and the sell off would depend on market conditions and other factors.

Refining NZ is on a trading halt, but based on its closing price yesterday, the BP stake is worth about $165 million.

The company said a reduced shareholding would not affect its existing contracts with the refinery.

The sell-down would result in Mobil and Z Energy becoming the largest shareholders with 17 and 15 percent respectively.

BP has been rationalising its assets and investments around the world, as it copes with the massive losses and costs associated with the 2010 Gulf of Mexico disaster.