The Mineral Resources Development Company Ltd (MRDC) has purchased ExxonMobil’s Mobil Oil New Guinea Ltd (Mobil) retail service station in the National Capital District (NCD), Lae and Madang.

The acquisition yesterday will be undertaken by Star Mountain Service Station Limited (SMSSL), a subsidiary company of MRDC. This agreement will allow them to obtain 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.

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.” Mano stated.

During the meeting, 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 and business will continue as usual. Both companies will work together to facilitate a smooth transition for customers, employees and business partners.

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