There are indications that the positive outlook in the downstream sector in Nigeria is attracting mega deals. The latest is the Exxon Mobil Oil shares sell off representing 60 percent of Mobil Oil Nigeria to Nipco Investments Limited, a wholly owned subsidiary of Nipco Plc.
The deal , worth about N40.2 billion, based on the market value of Mobil Nigeria Plc, as at yesterday, is subject to regulatory approval. NIPCO Investment is a vehicle owned by NIPCO plc (formerly called IPMAN Petroleum Marketing Company Limited (IPMCL).
Nipco Plc was incorporated by members of the Independent Marketers Association of Nigeria (IPMAN) as a Private Limited Liability Company, to participate in the distribution of the white Petroleum Products business across Nigeria. The company reported a turnover of N114 billion in 2015 and net profit of N1.4 billion.
Analysts say the Mobil Oil deal with Nipco Investments Limited may be part of measures to tackle the low oil price environment and dearth of upstream investments and it allow ExxonMobil focus on its core area of operations.
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