NIPCO GMD outlines measures to turnaround new acquisition

THE Group Managing Director, NIPCO Plc, Mr Venkataraman Venkatapathy, has outlined measures being put in place to turnaround the company’s newly acquired ExxonMobil 60 per cent equity stake in Mobil Oil Nigeria Plc and make the deal a game changer in the downstream industry.

Specifically, the deal will ensure increase in the production of Mobil brand of lubes and a re-start its aviation business among others.

The GMD disclosed this on the historic occasion of the closing gong at the Nigerian Stock Exchange (NSE) on the invitation of the Exchange to celebrate the successful completion of the largest acquisition witnessed in the Nigerian downstream sector in Lagos.
He said the acquisition, which marks NIPCO’s avowed resilience in the Nigerian economy will see a significant expansion in the production of lubes and ensure its availability across the country in a manner not seen before and thus making the company bigger.

“As an efficient oil marketing company, NIPCO acquisition of MON majority shares would also bring economies of scale to the firm, benefitting Nigerians and grow the economy further,” the GMD declared.

According to him, the visit to the exchange being the first public appearance after the attainment of majority shareholding in MON offered veritable opportunity to share thoughts with the course on the milestone and the group efforts to assure investors of immense benefits.

“To all discerning investors the deal is a big welcome to a new dawn and a new era that will usher in stability prosperity sustainability and growth in the downstream sector in particular and the industry in general,” he said.

Mr Venkatapathy noted that the deal would also make the NIPCO Group bigger not only just due to the acquisition, but also the new business lines that come with it to make the company one of the most proficient and best run outfit in the downstream industry.
He asserted that the Group overall goal is an improved performance of the company as an integrated oil firm through increased presence and efficiency in all its line of business without any job losses.

Mr Venkatapathy commended the NSE management for the invite and the preeminent role given to the company barely few weeks after completing the acquisition process stressing that it marks the confidence reposed in the new majority shareholder of MON.

He assured the NSE that the expected due diligence would be implemented in all transactions in the market to spur investors confidence in the new management.

Earlier the Chief Executive Officer, NSE, Mr Oscar Onyema, said the closing gong ceremony was organised to support and recognise the recent milestone of NIPCO especially the acquisition of majority shareholding in MON.
He expressed great optimism that the deal, which remains a major landmark event in the oil industry would add value to the sector as well as increase the confidence of investors.