ExxonMobil sells 60% stake in Mobil Oil Nigeria to Nipco

Chinazor Megbolu |

ExxonMobil Corporation is offering its 60 per cent stake in Mobil Oil Nigeria Plc for sale.

The statement from the organisation made available at the weekend noted the 60 per cent stake is being sold to Nipco Plc, which is a local downstream oil and gas firm in the country.

Nipco Plc was incorporated on January 8, 2001 as a private limited liability company and was known as IPMAN Petroleum Marketing Company Limited.

However, the report added that Mobil Oil Nigeria was also incorporated as a private limited liability company in 1951 and later, converted to a public limited liability company in 1978.

Mobil Oil Nigeria’s shares were listed on the Nigerian Stock Exchange (NSE) in 1979. Mobil Oil Nigeria is a subsidiary of Mobil Oil Corporation, now ExxonMobil Corporation, which owns a 60 per cent equity stake in the company.

“Mobil Oil Nigeria is said to be valued at NGN67.07 billion (USD210.8 million). It has 360.6 million ordinary shares outstanding, valued at NGN186 (USD0.58) per share,” the report said.

Meanwhile, Nipco in a statement pointed out that it has signed a sales and purchase agreement with ExxonMobil, which shows the start of the transition period.

The Managing Director, Nipco plc, Mr. Venkataraman Venkatapathy in the statement hinted that Nipco will now start the process of obtaining regulatory approvals from the requisite federal agencies, including Nigeria’s Securities and Exchange Commission and the Nigerian Stock Exchange.

“Nipco will maintain selling the Mobil brand, under license from ExxonMobil, in Nigeria, and will also acquire Mobil Oil Nigeria’s retail outlets, as part of the agreement,” he said.