Local firm acquires Mobil Oil’s downstream business
An indigenous downstream oil and gas firm, Nigerian Independent Petroleum Company (NIPCO) Plc, has acquired 60 per cent stake in Mobil Oil Nigeria Plc (MON).
The Managing Director of NIPCO, Venkataraman Venkatapathy, said in a statement that the acquisition was agreed with the execution of a sales and purchase agreement with ExxonMobil, a leading downstream player.
According to him, with the signing, “we will start the transition period and initiate the process of obtaining regulatory approvals from the requisite federal agencies – Security and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE).”
Venkatapathy said the transition period would also enable NIPCO to effectively manage a smooth and successful completion of the transaction.
He noted that NIPCO considers the acquisition an important synergy. “It is part of our strategic move to support NIPCO’s continuous growth and expansion of its Nigerian retail footprint.
“We are confident of adding tremendous value to MON and likewise MON will add a huge value to NIPCO. In furtherance of this value addition, NIPCO will continue to maintain the Mobil brand on its retail outlets as well as continue to blend and sell the Mobil brand of lubricants under Branding Licence (s) from ExxonMobil.”
He expressed gratitude to ExxonMobil for selecting NIPCO as the preferred bidder for the acquisition of MON. “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,” he added.
Venkatapathy noted that NIPCO’s expansion trend reinforces its confidence in Nigeria’s future.
According to him, the Nigerian economy still provides premium return on investment, adding that his company was privileged to have been given the opportunity by ExxonMobil on its home ground.
Commenting on the transaction, Manager, Media and Communications, Oge Udeagha, said subject to regulatory approval, change-in-control is anticipated by mid-2017.
He assured that Mobil Oil Nigeria’s employees would continue to be employed following the change-in-control.
According to Udeagha, Mobil Oil Nigeria has 250 company-owned and dealer-owned Mobil-branded retail stations, a fuel terminal and a lubricants plant in Apapa, and interests in two aviation fuel joint ventures in Lagos.