In a move seen as the continuation of the divestment strategy by international oil companies (IOCs) operating in Nigeria, local downstream company, NIPCO Plc, has announced the acquisition of a 60% interest in Mobil Oil Nigeria Plc from ExxonMobil.

According to the Managing Director of NIPCO, Venkataraman Venkatapathy, the acquisition was agreed with the implementation 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 – Security and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE). 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 said.

Venkatapathy stated that NIPCO’s development trend strengthens its confidence in Nigeria’s future, adding that the country’s economy still provides the best return on investment, and his company was honored to have been given the opportunity by ExxonMobil on its home ground, the Guardian news reports.

“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.

The Media and Communications Manager of NIPCO, Oge Udeagha, said depending on regulatory approval, change in control is expected by mid-2017.

He said it is guaranteed that Mobil Oil Nigeria’s employees would continue to be employed.

Anita Fatunji