Nigeria: ExxonMobil Quits Downstream Business, Sells Majority Stake In Mobil Oil

Nigeria: ExxonMobil Quits Downstream Business, Sells Majority Stake In Mobil Oil

By Maximus Chukwuka | Staff Reporter on October 20, 2016
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youth exxon mobil
A view of the Exxon Mobil refinery in Baytown is seen in Texas, in this file photo taken September 15, 2008. | REUTERS/Jessica Rinaldi/Files

ExxonMobil, an American multinational oil and gas corporation, has divested its 60% stake in Mobil Oil Nigeria Plc, to Nipco Plc. Nipco plc is an indigenous Nigerian downstream oil and gas company.

With  this latest development, Total, a French energy major is the only international oil company operating in the downstream sector of the Nigerian oil and gas industry.

In a statement issued on Wednesday, October 19, 2016, Venkataraman Venkatapathy, the managing director of Nipco plc said the acquisition was agreed with the execution of a sales and purchase agreement with ExxonMobil.

“With the signing, we will start the transition period and initiate the process of obtaining regulatory approvals from the requisite federal agencies – the Securities and Exchange Commission and the Nigerian Stock Exchange,” Venkatapathy said.

“Nipco considers this acquisition as an important synergy. It is part of our strategic moves to support NIPCO’s continuous growth and expansion of its Nigerian retail footprints. We are confident of adding tremendous value to MON and likewise MON will add a huge value to Nipco,” Venkatapathy said.

Venkatapathy disclosed that the transition period would also enable Nipco to effectively manage a smooth and successful completion of the transaction.

He added that Nipco would continue to maintain the Mobil brand in its retail outlets as well as sell the Mobil brand of lubricants under branding licence(s) from ExxonMobil.

“We wish to give every assurance to ExxonMobil that having entrusted us with this invaluable asset, we will ensure full brand compliance with ExxonMobil’s global standards as well as rigorously sustain and follow ExxonMobil’s code of conduct/ethos and operational excellence.”

“The Nigerian economy still provides a robust and premium return on investment and Nipco Plc is privileged to have been given this opportunity by ExxonMobil on its home ground.”

“To our shareholders and stakeholders, we say welcome to a new dawn. A new era that will usher in stability, prosperity, sustainability and growth,” he concluded.

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