Wellington, New Zealand-based Z Energy and Chevron have signed an agreement in which Z Energy will acquire 100 per cent of Chevron New Zealand. Z Energy is paying NZ$785 (US$555) million for all of the shares of Chevron New Zealand, the owner of Chevron’s downstream operations in New Zealand, including Caltex service stations and lubricant sales and distribution business.

The proposed acquisition excludes Chevron’s upstream interests and the recently sold Chevron New Zealand shareholding interest in New Zealand Refining.

Z Energy, also referred to as simply "Z", owns 210 sites, while Chevron has 146 Caltex-branded sites, which are independently owned and operated. Chevron also supplies 90 Farmlands sites. Competitors Exxon Mobil has about 190 Mobil stations and BP has 210 stations. Gull operates 21 stations in the North Island.

Z Energy says it will continue to operate two brands, though its rights to the Caltex brand will eventually phase out.

The acquisition is subject to clearance under the Commerce Act 1986 and consent of the Overseas Investment Office (OIO).

Last month Chevron sold, for more than $80 million, its 11.4 percent interest in New Zealand Refining, the operator of Marsden Point Oil Refinery – the only oil refinery in New Zealand.

On March 29, Chevron concluded the sale of its entire stake in Caltex Australia Limited for $3.7 billion. Chevron sold off its 50% ownership in the company and added that the gain from the asset sale will likely be recorded in the second-quarter 2015 financial statements.

San Ramon, CA-based Chevron is planning to divest assets worth $15 billion, 50% higher than the prior target of $10 billion, through 2017.