ExxonMobil,
an American multinational oil and gas corporation, has said that its divestment
of 60 per cent stake in Mobil Oil
Nigeria Plc to NIPCO Plc would
create opportunity for growth of the company’s brand. But, shareholders
expressed mixed feelings concerning the divestment by ExxonMobil, attributing
the latest development to the series of challenges confronting the downstream
sector.
Manager,
Media and Communications, Oge Udeagha,
told newsmen that subject to regulatory approval, change-in-control is
anticipated by mid-2017. He assured that Mobil Oil Nigeria’s employees will
continue to be employed following change-in-control.
Udeagha disclosed that Mobil Oil Nigeria is comprised of 250 company-owned and dealer-owned Mobil-branded retail stations, a fuels terminal and a lubricants plant in Apapa, and interests in two aviation fuel joint ventures in Lagos. He said that the sale also includes an office building and residential real estate in Lagos currently leased by Mobil Producing Nigeria.
“We
have also reached accompanying agreements for the continued import, blending
and distribution of Mobil-branded lubricants and marketing of Mobil-branded
fuel. These agreements will ensure the continued presence of the Mobil brand in
Nigeria and position the brand for future growth”,
he added.
He hinted
that the Mobil Oil Nigeria Board, Ministry of Petroleum, Nigeria Stock Exchange
and other relevant statutory agencies have been notified of the transaction. This
share-sale agreement, he noted, does not involve ExxonMobil’s upstream
production operations in Nigeria or lubricant supply to Caterpillar dealer,
Mantrac Nigeria.
Udeagha
said ExxonMobil regularly evaluates its global portfolio of businesses and
opportunities for growth, restructuring or divestment depending on fit with
strategic business objectives.
The
President, Rennaisance shareholders Association, Olufemi Timothy, explained that the implication of the acquisition
is that operators in the downstream sector are facing enormous challenges due
to the nation’s macro-economic concerns. He pointed out that the action was a
signal that Nigeria is currently losing its foreign investment, noting that
this would have a multiplier effect on the economy.
He said, “The implication is that operators in the downstream sector
can no longer survive which is not good for the economy and shareholders.”
(Guardian)
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