ExxonMobil, the world’s largest oil company by market value, has quit Nigeria’s downstream oil sector, divesting its 60 percent stake in Mobil Oil Nigeria (MON).
In a statement on Thursday, the company, with a market value of $460 billion – more than Nigeria’s gross domestic product (GDP) – 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”.
Nipco Plc., an indigenous downstream oil and gas company, confirmed the acquisition of ExxonMobil’s 60 percent stake in Mobil Oil Nigeria Plc (MON).
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.”
With a revenue stream of $246,204 billion, ExxonMobil, founded by John D. Rockefeller, one of the world’s richest men of all time, is the second biggest company in the world – just after Walmart and before Apple on Fortune 500 list.