Investment bank JPMorgan has been engaged by Channel Infrastructure, a New Zealand-based company publicly listed on both the Australian Securities Exchange and the New Zealand Stock Exchange, as part of an effort to acquire ExxonMobil’s fuel retail and terminal operations in New Zealand. The assets are believed to be valued at up to NZ$1.2 billion (approximately US$810 million).

Market observers have speculated that either Viva Energy or its major shareholder Vitol may be partnering with Channel Infrastructure in the proposed bid. Vitol, which holds a 29.5 percent stake in Viva Energy and two board seats, declined to comment when approached. Should Vitol be involved, it would mirror its previous strategy in Australia where it acquired Shell’s downstream assets for $2.9 billion in 2014. Those assets eventually became Viva Energy, which listed publicly with a market capitalization near $4.86 billion AUD.

Vitol is the world’s largest independent oil trader, handling around eight million barrels of crude and products daily, roughly seven percent of global supply. The company also manages a refining portfolio with a capacity of 1.2 million barrels per day and coordinates over 6,000 maritime tanker voyages annually.

While Viva Energy has indicated at recent investor briefings that mergers and acquisitions are currently not part of its strategy, sources suggest Vitol might sell the New Zealand assets it potentially acquires to Viva Energy in the future. However, some questions remain about Vitol’s intentions, especially as ExxonMobil reportedly wishes to maintain its existing fuel supply agreements.

ExxonMobil is offering its entire New Zealand fuel retail and terminal business as a package, prompting interested buyers to consider consortium bids. Other local players such as HW Richardson Group, which operates Allied Petroleum, and the Waitomo Group, advised by Jarden, have also shown interest in the retail network of approximately 150 service stations.

Channel Infrastructure’s focus appears to be on acquiring ExxonMobil’s terminal assets, which include facilities in Wiri Oil Service near South Auckland, Mount Maunganui, Wellington, Christchurch, and Bluff. The Wiri terminal connects directly to the Marsden Point import terminal operated by Channel Infrastructure, which currently manages about 40 percent of New Zealand’s fuel supply and 80 percent of its jet fuel throughput.

ExxonMobil's decision to divest its New Zealand operations comes as it prioritizes larger projects in the Permian Basin, Guyana, and liquefied natural gas developments. The company views its New Zealand assets as sub-scale amid pressures from Wall Street investors to reduce debt and focus on core businesses. Proceeds from the sale could range from NZ$500 million to NZ$1 billion depending on deal structure.

The transaction is expected to undergo regulatory review by the New Zealand Commerce Commission given the market implications. Private equity firms, including Kohlberg Kravis Roberts and The Carlyle Group—known to have shown interest in fuel retail assets in Australia—have not been confirmed as bidders in this process.

The formal sale process is underway, with interested parties having received information memorandum documents distributed by Barrenjoey, the financial adviser managing the transaction.