Exxonmobil Sells Stake In Mobil, Quits Downstream Oil Sector

SAN FRANCISCO, October 19, (THEWILL) – ExxonMobil has sold its 60 per cent stake in Mobil Oil Nigeria Plc to Nipco Plc, an indigenous Nigerian downstream oil and gas company.

This was revealed in a statement by Venkataraman Venkatapathy, Managing Director, Nipco, declaring that the acquisition was agreed with the execution of a sales and purchase agreement with United States-based ExxonMobil.

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

“Nipco wishes to express its profound gratitude and appreciation to ExxonMobil for selecting us 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.

“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.”

Story by Oputah David