Mobil returns to petrol stations along the east coast of Australia

John Dagge
Herald Sun
January 09, 2014
THE Mobil brand will return to petrol stations in the latest shake-up to hit the nation’s petroleum industry.
The deal to reintroduce Mobil branding to 7-Eleven petrol stations along the east coast of Australia comes as the $3 billion battle for Shell’s 900 stations and refinery heats up with three bidders vying for the prize, according to market speculation.
The Mobil name and colours all but disappeared from petrol stations after convenience store operator 7-Eleven bought the oil giant’s 295 outlets in May 2010.
They will be resurrected, however, as part of a 10-year deal, under which Mobil will officially become the sole supplier of fuels to 7-Eleven stations.
Mobil Oil Australia, a subsidiary of global energy giant ExxonMobil, had been supplying fuel to 7-Eleven outlets but the new deal cements the relationship.
Both companies declined to provide further details of the deal however it is understood 7-Eleven, the nation’s largest independent fuel retailer, will pay Mobil to use its branding.
7-Eleven Australia chief executive Warren Wilmot said the branding would be rolled out throughout the year.
“Being able to communicate we sell quality Mobil fuel products will ensure we can provide an outstanding offer to our customers,” he said.
ExxonMobil Australia chairman Richard Owen said the deal underpinned the company’s commitment to downstream operations – refining and fuel retailing – in Australia.
“The new strategic partnership provides a platform for future growth,” he said.
Mr Owen’s comments come as market speculation intensifies that Shell and BP are looking to exit the downstream side of their businesses, selling more than 1100 fuels stations and three refineries in Victoria, Queensland and Western Australia between them.
Mooted buyers from Shell’s station and Geelong refinery include a consortium led by investment bank Macquarie plus a rival group involving US private equity firm TPG, a major Canadian pension fund and a large sovereign wealth fund from the Middle East.
Shell sold its 226 petrol stations in New Zealand in 2010 and they have since been rebranded Z Energy.