Viva Energy will purchase Shell’s aviation business for US$250 million to help secure 700 Geelong jobs, the company’s boss has said.
“Jet fuel represents about 10 per cent of Geelong’s production,” said Viva chief executive officer Scott Wyatt.
“Securing supply to Melbourne’s airports through this acquisition is very important to the future of our refining business and for the 700-plus jobs at Geelong.”
The company announced on Monday it had signed an agreement to buy Shell Aviation Australia Pty Ltd (SAA).
“We have been the exclusive supplier of jet fuel to Shell Aviation Australia over the past two years.
“This purchase enables us to expand into the airports and provide direct supply to customers, which is very exciting for us.”
Mr Wyatt said Viva’s Geelong refinery supplied more than half of Tullamarine Airport’s fuel and all Avalon Airport’s.
The refinery is one of two in the Southern Hemisphere that makes Avgas for smaller propeller planes, which service many of the regional centres, he said.
“We already see a lot of opportunities to grow the aviation business by expanding supply chain capacity to major airports and increasing our presence in the smaller airfields.
“This acquisition will see Viva Energy supply more than 50 airports around the country.
The transaction remains subject to regulatory approvals. Viva expects to complete the acquisition by mid-2017 if the processes proceed on time.
Employees of Shell Aviation Australia will remain employed by the company as it transfers to new ownership.
“We’ve worked with many Shell Aviation employees for a number of years,” Mr Wyatt said.
“We will work closely with Shell to help make the transition to Viva Energy a smooth and welcoming experience for employees and customers alike.”
