Statement of Preliminary Issues released for Mobil applications to increase ownership interest in two jet fuel joint ventures
Published11 May 2022
The Commerce Commission has published a statement of preliminary issues relating to two clearance applications from Mobil Oil New Zealand Limited to acquire up to 100% of Z Energy Limited’s ownership interest in two assets used to supply jet fuel at Auckland International Airport: the Wiri to Auckland Pipeline (WAP) and the Auckland Airport Joint User Hydrant Installation (JUHI).
The statement outlines the key competition issues that the Commission currently considers important in deciding whether or not to grant clearance to the proposed acquisitions.
The Commission invites interested parties to provide comments on the likely competitive effects of the proposed acquisitions. Submissions can be sent by email to firstname.lastname@example.org with the reference “Mobil jet fuel” in the subject line. Any submissions should be received by close of business on 25 May 2022.
The Commission is currently scheduled to make a decision on the application by 20 June 2022. However, this date may be extended as the investigation progresses.
The Statement of Preliminary Issues and a public version of the application can be found on the Commission’s case register.
The WAP delivers jet fuel to Auckland International Airport from the storage facility at Wiri, which is then stored at the Airport at the JUHI. The assets are currently jointly owned and operated by Mobil, Z and BP Oil New Zealand Limited under the terms of two separate joint venture agreements. If Mobil acquires all of Z’s ownership interest, it may become the majority owner of both assets.
We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
Further information explaining how the Commission assesses a merger application is available on our website.