Mobil Oil Nigeria has announced that ExxonMobil Oil Corporation will be selling off 60% of the company’s shares to in Mobil Oil Nigeria to Nipco PLC. In statement released by the company, the sale is subject to approval of the Nigerian Stock Exchange, NSE.
See statement below:
DIVESTMENT OF SHARES BY EXXONMOBIL OIL CORPORATION
Mobil Oil Nigeria plc has been informed by its majority shareholder, ExxonMobil Oil Corporation, that the shareholder has agreed, subject to regulatory approvals, to sell its shares representing 60 percent of Mobil Oil Nigeria’s shares to Nipco Investments Limited, a wholly-owned subsidiary of Nipco Plc (both of which are Nigerian companies).
Mobil Nigeria Plc markets petroleum products. The Company sells fuels that are procured from the Nigerian National Petroleum Corporation and by direct importation. Mobil also offers lubricants that are blended locally or purchased from associated companies.
Nipco was formerly called IPMAN Petroleum Marketing Company Limited (IPMCL) was incorporated by members of the Independent Marketers Association of Nigeria (IPMAN) on January 8th, 2001 as a Private Limited Liability Company to participate in the distribution of White Petroleum Products business across the nooks and crannies of the Nation.
Once the acquisition of the Mobil Oil Nigeria is finalised, Nipco PLC will be become majority shareholders in Mobil.
The statement did not state how much both parties agreed in the deal. ExxonMobil has not given reason why it is divesting out of Mobil Oil Nigeria.
However, the company has taken a serious hit since the crash in global oil price. The company has also taken more losses due to the shut down of the Forcados trunk line as a result of renewed militant activities in the Niger Delta.
