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- Release Date: 14/12/12 18:26
- Summary: GENERAL: NZR: Independent Review of Processing Fee Arrangements
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NZR
14/12/2012 16:26
GENERAL
REL: 1626 HRS The New Zealand Refining Company Limited
GENERAL: NZR: Independent Review of Processing Fee Arrangements
Refining NZ has today published the findings of an independent review of its
processing arrangements with its oil company customers.
The Company's processing arrangements are reviewed annually by the
Independent Directors and Refining NZ management to ensure the arrangements
remain fit for purpose and are fair to all shareholders. In 2011 the
Independent Directors recommended that the Company initiate an independent
review of the arrangements in 2012.
The review by independent oil industry experts, Purvin & Gertz was carried
out in November and their report to the Refining NZ Independent Directors,
concludes that: "Over the 15 year period from 1997 to 2011 the current
processing fee arrangement between Refining NZ and the customers is
considered to be generally reasonable to all parties, relative to the risks
borne by Refining NZ and the customers."
The current processing arrangements came into play in 1995 and are based on
sharing the refining margin according to the risk and costs associated with
buying and refining crude oil and distributing the finished products to
terminals around the country. They are intended to provide Refining NZ
sufficient funds for investment in the business while giving customers
sufficient incentive to utilise the refinery's operations.
This review is the second independent review of the Company's current
processing arrangements in the last three years.
A summary of the Purvin & Gertz review is available to shareholders through
the NZX and Refining NZ's website at www.refiningnz.com.
D.M. Jensen
Chief Financial Officer / Company Secretary
Marsden Point
14 December 2012
End CA:00231157 For:NZR Type:GENERAL Time:2012-12-14 16:26:10
