MRDC and ExxonMobil affiliate Mobil Oil New Guinea sign agreements for retail fuel partnership in Port Moresby

(From left) Charles Ewart, General Manager Mobil Oil New Guinea Limited; ExxonMobil PNG Chairman and managing director Dinesh Sivasamboo; MRDC managing director Augustine Mano; Western Governor Taboi Awi Yoto and MRSM Chairman David Kaiankim after the signing of the agreements. Credit: MRDC Communications

The acquisition will be undertaken by Star Mountain Service Station Limited (SMSSL), an investment company owned by three MRDC subsidiary companies: MRSM, MROT2 and MRCMCAH.

Under the proposed transaction, SMSSL will acquire six Mobil service stations in Port Moresby: Mobil Boroko Drive, Mobil Islander, Mobil Gerehu, Mobil Tokarara, Mobil Ela Beach and Mobil Lahara.

In addition, SMSSL will construct and operate Mobil-branded service stations in Lae, on Markham Road, and in Madang, on Modilon Road.

The service stations will continue to operate under the Mobil brand, with Mobil supplying fuel products to the network through a long-term commercial arrangement. Customers can expect continuity in product availability, service standards and brand experience across the existing network.

The transaction follows an established international retail fuel business model in which recognised fuel brands partner with local owners through long-term fuel supply and branding arrangements.

MRDC Managing Director Augustine Mano said the acquisition forms part of MRDC’s strategy to strengthen and diversify its investment portfolio in the downstream energy sector.

“This investment reflects our continued focus on building commercially sustainable businesses that generate long-term value for our shareholders and beneficiaries,” Mr Mano said.

“The retail fuel sector is a critical component of the national economy, and this transaction presents an opportunity to acquire an established business with proven assets, established operations and a strong customer base.

“Subject to completion, the transaction will strengthen the MRDC Group’s presence in a key economic sector and add a strategic operating asset to our investment portfolio. Our long-term partnership with Mobil will support continuity of fuel supply and service standards across the network.”

Chairman and Managing Director of ExxonMobil PNG, Dinesh Sivasamboo, said the company remained committed to Papua New Guinea’s fuel market through its ongoing partnership with the retail network.

“This transaction combines local ownership with the continued support of an internationally recognised fuel brand,” Mr Sivasamboo said.

“Following completion, customers will continue to be served through the Mobil-branded network under our ongoing fuel supply arrangements. They can also continue to expect the quality products, service standards and trusted brand experience associated with Mobil.”

Both companies will work together to facilitate a smooth transition for customers, employees and business partners.