Exxon Mobil exits downstream business in Nigeria
Exxon Mobil has sold its majority stake in its Mobil Oil Nigeria (MON) affiliate to Nipco Investments Limited, a wholly owned subsidiary of Nigerian Independent Petroleum Company (NIPCO). This entails the exit of Exxon from Nigeria’s downstream business.
The value of Exxon Mobil’s 60 percent stake has not been disclosed but the acquisition deal was worth about N40.2 billion (US $129 million), according to a NIPCO press release.
Venkataraman Venkatapathy, managing director of NIPCO, said that Exxon wanted to focus on its upstream business in the country.
The divestment, he added, is not a result of the oil company’s lack of confidence in Nigerian economy but rather to promote indigenous operators in the downstream.
Mobil-branded fuel and lubes, nonetheless, will be continued to be sold by NIPCO, and no layoffs will take place.
