Nipco outlines growth strategies for Nigeria’s downstream petroleum business
NIPCO Plc has outlined measures being put in place by the majority shareholders of the newly acquired Mobil Oil Nigeria Plc, to make the deal a game changer in the downstream industry.
The Group Managing Director, NIPCO Plc, Venkataraman Venkatapathy, said the deal will ensure increase in the production of Mobil brand of lubes, which has remained a cherished brand in the lubricant market and a re-start of its aviation business among others.
Venkatapathy made this disclosure during the closing gong at the Nigerian Stock Exchange (NSE) on the invitation of the Exchange to celebrate the successful completion of the largest acquisition witnessed in the Nigerian downstream sector in Lagos.
He said the acquisition, which marks NIPCO ’s avowed resilience in the Nigerian economy will see a significant expansion in the production of lubes and ensure its availability across the country in a manner not seen before and thus making the company bigger.
“As an efficient oil marketing company, NIPCO acquisition of Mobil’s majority shares would also bring economies of scale to the firm, benefitting Nigerians and growing the economy further,” he declared.
According to him, the visit to the Exchange being the first public appearance after the attainment of majority shareholding in Mobil Oil, offered a veritable opportunity to share thoughts with the bourse on the milestone and the Group’s efforts to assure investors of immense benefits.
“To all discerning investors, the deal is a big welcome to a new dawn, and a new era that will usher in stability, prosperity, sustainability and growth in the downstream sector in particular, and the industry in general,” he said.
Venkatapathy noted that the deal would also make the NIPCO Group bigger not only just due to the acquisition, but also the new business lines that come with it to make the company one of the most proficient and best run outfit in the downstream industry.
Earlier, the Chief Executive Officer, NSE, Oscar Onyema, said the closing gong ceremony was organised to support and recognise the recent milestone of NIPCO especially the acquisition of majority shareholding in Mobil Oil.
He expressed great optimism that the deal would add value to the sector as well as increase the confidence of investors.