The biggest oil company in Europe, Shell, has signed a letter giving its assent to go ahead and sell a few of its downstream assets in New Zealand to the Guardians of New Zealand Superannuation and to Infratil Ltd.

Although it is not exactly a binding agreement, the signed letter of intent gives a clear indication that Royal Dutch Shell Plc is definitely going to carry on with the sale. Shell is planning to sell its fuel refining and retailing interests in New Zealand, with the intent to mainly to focus on the gas and oil production to expand the market as a global strategy.

The firm had reportedly agreed to negotiate on the venture, which is exclusively led by Infratil, on the huge sale of about 229 port terminals, filling stations and an additional 17 per cent stake of the group last month, and it is a notable fact that they had not exactly disclosed the price.

The group which has been operating in NZ for the past 97 years, and instigated its exploration there in the year 1955, has decided to retain its gas and oil assets which also include the stakes in the three gas fields of New Zealand.