Papua New Guinea’s Mineral Resources Development Company Limited (MRDC) is expanding into the downstream energy sector through a proposed acquisition of six Mobil-branded service stations in Port Moresby and plans to establish additional outlets in Lae and Madang.
MRDC and Mobil Oil New Guinea Limited, an affiliate of ExxonMobil Corporation, announced on October 20 that they had signed agreements covering the proposed acquisition and a long-term fuel supply and branding partnership.
The acquisition will be undertaken by Star Mountain Service Station Limited (SMSSL), an investment company owned by three MRDC subsidiaries: MRSM, MROT2 and MRCMCAH.
The six existing service stations earmarked for acquisition are Mobil Boroko Drive, Mobil Islander, Mobil Gerehu, Mobil Tokarara, Mobil Ela Beach and Mobil Lahara.
SMSSL will also construct and operate Mobil-branded service stations on Markham Road in Lae and Modilon Road in Madang, extending the network beyond the National Capital District.
Under the proposed arrangement, the outlets will retain the Mobil brand, with Mobil continuing to supply fuel products through a long-term commercial agreement. The companies said customers could expect continuity in product availability, service standards and brand experience.
MRDC managing director Augustine Mano said the transaction aligned with the company's strategy to strengthen and diversify its investment portfolio in the downstream energy sector.
He said the acquisition would give the MRDC Group an opportunity to enter an established retail fuel business with existing assets, operations and a customer base.
“Subject to completion, the transaction will strengthen the MRDC Group’s presence in a key economic sector and add a strategic operating asset to our investment portfolio,” Mano said.
He added that the long-term partnership with Mobil would support continuity of fuel supply and service standards across the network.
ExxonMobil PNG chairman and managing director Dinesh Sivasamboo said the company would maintain its involvement in Papua New Guinea's retail fuel market through the supply and branding partnership.
The arrangement combines local ownership of the service station business with continued support from an international fuel brand, Sivasamboo said.
Both companies said they would work together to facilitate a smooth transition for customers, employees and business partners.
The agreements mark a proposed expansion of MRDC's investments into retail fuel distribution, while allowing Mobil to retain its brand presence through a long-term commercial relationship with the new owner.
