ExxonMobil Corp. is selling its 60% stake in Mobil Oil Nigeria Plc to Nipco Plc, an indigenous downstream oil and gas company in Nigeria. Nipco Plc was incorporated on 8 January 2001 as a private limited liability company and was formerly known as IPMAN Petroleum Marketing Co. Ltd.
Mobil Oil Nigeria was incorporated as a private limited liability company in 1951 and was converted to a public limited liability company in 1978. Mobil Oil Nigeria’s shares were listed on the Nigerian Stock Exchange in 1979. Mobil Oil Nigeria is a subsidiary of Mobil Oil Corporation, now ExxonMobil Corp., which owns a 60% equity stake in the company.
Mobil Oil Nigeria is valued at NGN67.07 billion (USD210.8 million). It has 360.6 million ordinary shares outstanding, valued at NGN186 (USD0.58) per share.
Nipco said that it has signed a sales and purchase agreement with ExxonMobil, which signals the start of the transition period. Nipco Managing Director Venkataraman Venkatapathy said 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.
With this latest divestment of ExxonMobil, Total SA is the only remaining foreign oil company operating in Nigeria’s downstream oil sector.