Valero Energy may be interested in New Zealand Refining

Valero Energy Corp., a U.S.-listed refining company, reportedly plans to bid for all or part of The New Zealand Refining Company Ltd. As much as 36% of the refiner may be for sale given reports that ExxonMobil Corp. is joining Royal Dutch Shell PLC in withdrawing from New Zealand’s retail fuel market. Falling global processing margins may highlight the appeal of the New Zealand plant’s fee structure, which guarantees minimum revenues, according to analysts. Because it is a toll processor, making it less exposed oil price volatility, New Zealand Refining is more akin to an “infrastructure-type asset,” which could make the U.S.-based independent refiner less reliant in its home market. (July 24, 2009)