ExxonMobil, the world’s largest oil company by market value, has announced that it has divested its 60 percent stake in Mobil Oil Nigeria (MON), effectively quitting the downstream oil sector. The 60% stake was acquired by Nipco Plc., an indigenous downstream oil and gas company.
In a statement on Thursday, the company, which has a market value of $460 billion said it made business sense to quit the downstream oil sector at this time.
“Following these assessments, we sometimes find that it makes greater business sense to divest when the businesses are estimated to have higher value to others,” ExxonMobil said.
The company went on to say “this decision is in no way a reflection of our view on the local business climate, financial results or the workforce.”
Confirming the acquisition, Venkataraman Venkatapathy, managing director, Nipco Plc., said: “With the signing, we will start the transition period and initiate the process of obtaining regulatory approvals from the requisite federal agencies – SEC and NSE.
“This will also enable Nipco Plc. to effectively manage a smooth and successful completion of the transaction.
“It is part of our strategic move to support Nipco’s continuous growth and expansion of its Nigerian retail footprint. We are confident of adding tremendous value to MON and likewise MON will add a huge value to Nipco plc.