ExxonMobil leaves Nigeria’s downstream oil sector

United States-based ExxonMobil has divested its 60 per cent  stake in Mobil Oil Nigeria Plc to Nipco Plc, an indigenous Nigerian downstream oil and gas company. This development leaves only one foreign oil company, Total operating in the downstream sector of the Nigerian oil and gas industry.

Nipco, in a statement on Wednesday, said the acquisition was agreed with the execution of a sales and purchase agreement with ExxonMobil.

The Managing Director, Nipco, Mr. Venkataraman Venkatapathy, said, “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.”

He said the transition period would also enable Nipco to effectively manage a smooth and successful completion of the transaction.

“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.

He said in furtherance of this value addition, 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.

He said, “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.”