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Tag: Nipco

  • Nipco shareholders okay guaranty for $301m Mobil acquisition

    Nipco shareholders okay guaranty for $301m Mobil acquisition

    Shareholders of Nipco PLC have authorised the Board of Directors to stand as a surety and guarantor for the acquisition of 60 per cent majority equity stake in Mobil Oil Nigeria by Nipco Investments Limited, a wholly owned subsidiary of Nipco Plc.

    At the extraordinary general meeting, shareholders praised the acquisition and approved all resolutions tabled before the meeting.

    Nipco had agreed to pay $301 million for the acquisition of ExxonMobil Oil Corporation’s 60 per cent majority equity stake in Mobil Oil Nigeria Plc. The total consideration of $301 million, which is subject to price adjustments for dividends and other factors, is equivalent to N91.88 billion at current official exchange rate of N305.25 per Dollar.

    Under the deal, ExxonMobil will sell its majority equity stake of 60 per cent to Nipco Investments Limited; a wholly-owned subsidiary of Nipco. ExxonMobil will transfer its total shareholding of 216.36 million ordinary shares of 50 kobo each to Nipco Investments Limited for the consideration of $301 million.

    At the meeting, shareholders authorised the board to stand as surety and guarantor for Nipco Investments Limited and also approved the guaranty dated September 26, 2016 given by Nipco for the benefit of ExxonMobil Corporation, USA in connection with the acquisition by Nipco Investments Limited.

    A shareholder, Alhaji Sanni Yau said the acquisition was a demonstration of the capacity of Nipco and its commitments to the Nigerian economy.

    According to him, the fact that Nipco had in the last 12 years focused exclusively on the downstream sector will give it necessary confidence and wherewithal to effectively reposition Mobil Oil Nigeria as an industry leader within the shortest possible time.

    He noted that the confidence reposed in Nipco to put Mobil Oil back as an industry has started to manifest, citing the share price appreciation of more than 55 per cent since the official announcement of the deal by Mobil Oil Nigeria at the Nigerian Stock Exchange (NSE).

    He expressed confidence that Nipco would not only sustain the modest performance of Mobil Oil  but also improve on it as it pursues the company’s vision of being the  first choice company in the hydrocarbon industry to all stakeholders.

    Another shareholder, Alhaji Suleiman Mohammed, noted the historic position of the acquisition as the first of such to be undertaken by an indigenous operator.

    He praised the Board of Nipco for taking such a laudable step which is fast reshaping the landscape of the downstream sector.

    Similarly, another shareholder, Alhaji Musa Felande, said the acquisition would benefit independent fuel marketers who will earn more returns through improved earnings on their shares in Nipco.

    He urged the board and management of the company to consider going into petroleum refinery in the near future.

    In his remarks, Managing Director, Nipco PLC, Mr Venkataraman Venkatapathy said the acquisition is an important synergy and part of a strategy to support Nipco’s continuous growth and expansion in the retail sector of the oil and gas industry.

    Venkatapathy, who stood in for the Chairman of Nipco, Chief Bestman Anekwe, said the company would continue to maintain the Mobil Oil brand at its retail outlets as well as continue to blend and sell Mobil Oil brand of lubricants under blending licence from ExxonMobil.

  • How NIPCo acquired 67% equity in Mobil Oil

    How NIPCo acquired 67% equity in Mobil Oil

    Ownership of one of Nigeria’s blue chip companies, Mobil Oil Nigeria (MON) Plc just changed hands with NIPCo acquiring MON’s entire 60 per cent equity holding. NIPCo previously held seven per cent shares of Mobil before the divestment by the American oil giant, thus, bringing NIPCo’s shares in the public quoted oil marketing firm to 67 per cent, it has been learnt.

    The Manager, Media and Communications, Mobil Producing Nigeria Unlimited, Mr. OgeUdeagha, who exclusively spoke to The Nation on the divestment and acquisition deal, said the processes that led to the emergence of NIPCo as the preferred bidder for the acquisition of ExxonMobil’s shares in Mobil Oil was carried out transparently. He also stated that the two firms reached far-reaching agreements especially in protection of the welfare of Mobil Oil Plc workers that would be inherited by NIPCo, adding that the divestment was in line with ExxonMobil’s business plan.

    According to him, the choice of NIPCo was made on a commercial basis considering price, transaction terms, long term strategic perspective and a number of other factors, including its commitment to Mobil Oil Nigeria’s employees.

    He noted that ExxonMobil carefully evaluates opportunities across a wide range of market conditions and only advance projects generating long-term shareholder value. 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. Therefore, this decision is in no way a reflection of our view on the local business climate, financial results or the workforce, he added.

    Udeagha said: “ExxonMobil has reached an agreement with the Nigerian Independent Petroleum Company for the sale of its 60 percent share in its downstream Mobil Oil Nigeria affiliate. Mobil Oil Nigeria is comprised of 250 company-owned and dealer-owned Mobil-branded retail stations, a fuels terminal and a lubricants plant in Apapa, and interests in two aviation fuel joint ventures in Lagos.

    “We have also reached accompanying agreements for the continued import, blending and distribution of Mobil-branded lubricants and marketing of Mobil-branded fuel. These agreements will ensure the continued presence of the Mobil brand in Nigeria and position the brand for future growth.

    “Subject to regulatory approval, change-in-control is anticipated by mid-2017. The Mobil Oil Nigeria Board, Ministry of Petroleum, Nigeria Stock Exchange and other relevant statutory agencies have been notified of the transaction.

    “This share-sale agreement does not involve ExxonMobil’s upstream production operations in Nigeria or lubricant supply to Caterpillar dealer, Mantrac Nigeria.

    “ExxonMobil regularly evaluates its global portfolio of businesses and opportunities for growth, restructuring or divestment depending on fit with strategic business objectives. Mobil Oil Nigeria will be renamed after the sale is completed.

    “It is expected that Mobil Oil Nigeria’s employees will continue to be employed following change-in-control.”

    NIPCo previously was 100 per cent owned and managed by Nigerians. It was actually seen as a central firm owned by independent oil marketers to corporately address common issues but due to management and financial crises, Pure Bond Limited, a Nigerian company owned by Indians bought 60 per cent of the company.

    Currently, Pure Bond owns over 70 per cent equity in NIPCo, The Nation learnt. Other major shareholders in NIPCo include prominent members of Independent Petroleum Marketers Association of Nigeria (IPMAN) such as Executive Director,  Corporate Services, AbdulkadirAminu and BestmanAnekwe, among others. However, the recognised current IPMAN President, Lawson Obasi, it was learnt, has no shares in NIPCo.

  • The NIPCO example

    The NIPCO example

    •Vigorously pursuing the gas alternative is perhaps the surest way to diversify Nigeria’s economy

    It appears to us more like a rare admixture of tenacity and belief than economics and the pursuit of profits. This is the laudable story of NIPCO Plc., an indigenous oil and gas marketing firm.

    Last week, the management of NIPCO paid a courtesy call on former President Olusegun Obasanjo, at his Hilltop residence in Abeokuta, Ogun State. It was revealed at that occasion that the former president had granted licences to three firms to develop Nigeria’s abundant natural gas for automobile use and reduce dependence on imported petroleum products.

    As it has turned out, only NIPCO put the gas conversion licence to effect. It had partnered with the Nigerian Gas Company to form Green Gas Limited and has continued to invest in the project in the last decade.

    According to the managing director of the company, Mr. Venkataraman Venkatapathy, Green Gas Limited has developed nine operational Compressed Natural Gas (CNG) stations while eight others are in various stages of construction.

    Edo State being the pilot test ground of the CNG for vehicles project, it is reported that Benin City currently has over 4,000 vehicles running on CNG. This is said to translate to replacing 20 million litres of petrol between 2012 and 2015 and a foreign exchange savings of about $9 million.

    The superiority of gas over liquid fuel is not in doubt. Apart from the fact that it is clean and more environmentally friendly, Nigeria has about 186 trillion cubic feet of natural gas reserve which has remained largely untapped.

    Ventkatapathy put Nigeria’s gas conundrum into perspective thus: “To replace 20 percent of current petrol consumption of Nigeria, natural gas required is less than five percent of the total domestic gas consumed currently and less than one percent of the current gas production. Foreign exchange saved will be close to $2 billion.”

    The NIPCO example is particularly remarkable because gas gathering and conversion to various uses is very capital intensive and requires high technological know-how, especially at the outset. This explains why many investors, including international oil companies, would rather flare gas into the atmosphere, take petrol and other by-products and pay token penalties as stipulated by the Federal Government.

    NIPCO Plc has in the last 10 years developed what is perhaps the largest CNG station in Africa at Ibafo, Ogun State, and it has also tapped into the network of gas pipelines in Benin City to commence its pilot scheme.

    We urge that government must do all that is necessary to encourage Nipco as a pioneer foraging in a difficult terrain its contemporaries have shunned. Now more than ever, a set of incentives should be rolled out for firms like Nipco that have bucked the trend to invest in difficult and not too profitable areas of the economy.

    That gas is a key part of earth’s energy equation going forward is not debatable. The Federal Government must therefore get serious and drive its own gas policy by drawing timelines and setting achievable targets for major players in the energy sector. For instance, if government licensed three firms 10 years ago to convert natural gas and two reneged, there ought to be sanctions; many more licenses should have been granted to well-screened firms.

    As crude oil price falls, government must resolve to dive into the rapid development of Nigeria’s astounding gas reserve as bases for the new economy. Apart from gas vehicles and gas-powered plants for electricity generation, domestic gas use is still insignificant. Government could initiate a policy that requires that every new housing estate in Nigeria must be piped for gas use.

    While we ask government to consider gas as a viable alternative for diversifying the economy, we again commend NIPCO Plc for taking the bull by the horns and for raising the ideals of business beyond the profit motives alone.

     

     

  • Nipco sells kerosene at N50 per litre

    Nipco sells kerosene at N50 per litre

    The Nipco filling station at Fadeyi, Lagos Mainland yesterday sold kerosene at N50 per litre.

    Residents with jerry cans of various sizes formed long queues at the kerosene pump to partake of the largesse.

    A resident, Mrs. Taiwo Balogun, said: “Kerosene is N50 per litre, can you believe that?

    “It is a good development that the government has allowed kerosene to become this cheap. Do you know what this means for businesses and homes? The price of everything else would automatically come down. Last Saturday, I bought this same keg (a five litre) for N650 and today, it is N250. I am happy and I pray this would continue.”

    Another customer, Oluchi Ede, who sells roasted plantain said: “We asked for change and we are happy that we are seeing the change. No one would have dreamt that kerosene would be sold so cheaply.”

    Damilatu Lawal said: “It is very good that they are selling kerosene so cheap. It should continue and be extended to other filling stations. It gives us peace of mind. Our profit margin will increase and we can now sell cheaply and win more customers. It is indeed very good.

    “We just pray that this development continues because we all know Nigeria for starting something good and not continuing it. That is why everyone is rushing it now, because we are afraid that they can suddenly revert to the previous price.”

    The Dealer of the filling station, Mr. Kayode Adepoju expressed optimism with the continuity of the new kerosene policy.

    He said what stopped major dealers from engaging in kerosene sales prior to now, was the high landing invoice, high cost of profoma landed invoice (PFO) and bank charges, which led to high purchase and sales cost.

    “Although this is the first time we are selling kerosene at Nipco gas station, we are optimistic that we would continue the development. We could not sell before now due to the high landing invoice and high cost of profoma landed invoice (PFO) and bank charges, but we can sell now because government now sells to us on credit.

    “This has accorded many other dealers the opportunity to also engage in kerosene sales,” Adepoju said.

    The Nipco dealer said kerosene dealers do not receive subsidy from government to carry out the directive.

    “It is an initiative by the federal government to ensure that the masses get valued products at regulated and affordable prices. We do not receive subsidy from government, apart from our usual remit. The major marketers have implemented this new directive,” he said.

    Adepoju urged government to regulate and enforce the initiative to ensure its continuity and adherence by other gas stations.

    “I pray this initiative continues. It would continue if the Federal Government can continue to enforce, through agencies like the Department of Petroleum Resources (DPR), to go round and check for defaulter.”

     

  • NIPCO imports 37m litres of petrol

    NIPCO imports 37m litres of petrol

    The Nigerian Independent Petroleum Company (NIPCO) Plc has imported about 28 million metric tons (about 37 million litres of petrol) to ease fuel scarcity.

    The product was brought into the country by ‘MT Admiral L.’  This demonstrates the company’s resolve to make fuel available across the country, especially in this period of fuel scarcity that  almost crippled the economy. The import would augment supply by the Nigerian National Petroleum Corporation (NNPC) the company added.

    NIPCO depot has been working round the clock to dispense fuel to marketers to distribute to filling stations across the country.

    NIPCO’s Manager, Corporate Affairs, Lawal Taofeek confirmed that the importation product would augment supplies from Products and Pipeline Marketing Company (PPMC), an arm of NNPC. He stated that the import was one of the steps taken by NIPCO to meet the needs of its esteemed customers who had remained steadfast with the organisation in the last 11 years. He noted that the dream of the investors in the company has been the organisation’s driving force to go extra mile in getting products to keep the retail outlets wet.

    In 2015 and beyond, we intend to enhance our product importation both for regulated and deregulated products to meet fuel marketers’ need and prepare adequately for the upcoming reforms in the oil and gas industry, he added.

  • NIPCO posts N2.916b profit

    NIPCO Plc has declared a profit before tax of N2.916 billion for the financial year ended December 31, 2014, representing a three per cent increase over the N2, 827 billion declared in 2013.

    Its Chairman, Plc, Chief Bestman Anekwe shareholders at the company’s 11th Annual General Meeting (AGM) in Abuja, said the company’s profit after tax also rose by 11 per cent from N2,089 billion in 2013 to N2,314 billion in the year under review.

    In a statement by its Manager, Corporate Affairs, Lawal Taofeek, Chief Anekwe described the performance as good, considering the challenging operating environment in 2014, adding that the company is emerging stronger, bigger and more committed to excellent services.

    According to him, the company recorded a turnover of N145.174 billion in 2014 as against N137.851 billion in 2013, which represents an increase of N7.32 billion.

    He noted that in view of the performance, the Board recommended a dividend of 375kobo per share, totalling N703.756 million representing a seven per cent increase over the 350 kobo paid in 2013. The amount was unanimously approved by shareholders.

    The chairman explained that the impressive result is a fallout of the commitment, dedication, diligence and prudent management of resources and the numerous marketing strategies put in place by the company. He stated that the result is a reflection of the resolve of the board and the management to brace all odds in achieving a superior shareholders’ value in the industry.

    Reviewing the downstream sector last year, Anekwe said because domestic requirement of refined petroleum products could not be met locally due to poor state of the refineries, it made import regime unavoidable. “The above scenario coupled with the difficulties associated with the processing of subsidy claims impacted negatively on downstream operator’s margins resulting in low returns on investment,” he said.

    Its Managing Director, Mr Venkataraman Venkatapathy said the company was able to put in place initiatives, which improved its service delivery to stakeholders, stressing that the workforce played a key role in this direction. He said the company’s operations continued to be in tandem with international best practices, noting that the focus will propel the firm to exceptional performance this year.

    Venkatapathy stated that NIPCO’s passion for safety continued to pay off and earned it scores of recognitions, the most recent being Nigeria Ports Authority (NPA) Best HSE compliant terminal award for the fourth consecutive year. He assured shareholders that the company’s transformation agenda is on course and shall remain committed to meeting their needs in line with the corporate mission.

  • NIPCO celebrates workers at 10

    NIPCO celebrates workers at 10

    The board and management of NIPCO Plc, an integrated indigenous oil and gas operator, has described its workers as a key component in the success story of the company since it opened shop in 2004.

    The company’s Chairman, Chief Bestman P. Anekwe, stated this at the 10th anniversary and special recognition award ceremony held by the company to show gratitude to the staff for their contributions and as the key promoters of the organisation in the last 10 years.

    According to the company’s Manager, Corporate Affairs, Lawal Taofeek, Anekwe said the event was the first of its kind in the history of the company adding that it’s commendable as it provided avenue to value publicly the efforts of its human capital and some founding fathers whose efforts brought about the steady growth of the organisation.

    Anekwe said the NIPCO dream, which some people had thought was mission impossible, has become a reality even in the face of some daunting challenges to the delight of numerous stakeholders.

    He singled out the wonderful support of two founding fathers of the company – Alhaji Abdulkadir Aminu and Mr. Tunji Adeniji with whom he travelled across the nooks and crannies of the country soliciting the support of independent fuel marketers to key into the project. “The trio went through lots of tribulations from the onset of the firm but our greatest joy today is that the dream of the promoters had crystallised into reality even beyond our projections especially against the background  of what its peers were able to achieve within a decade,” he said .

  • NIPCO celebrates workers at 10

    NIPCO celebrates workers at 10

    The board and management of NIPCO Plc, an integrated indigenous oil and gas operator, has described its workers as a key component in the success story of the company since it opened shop in 2004.

    The company’s Chairman, Chief Bestman P. Anekwe, stated this at the 10th anniversary and special recognition award ceremony held by the company to show gratitude to the staff for their contributions and as the key promoters of the organisation in the last 10 years.

    According to the company’s Manager, Corporate Affairs, Lawal Taofeek, Anekwe said the event was the first of its kind in the history of the company adding that it’s commendable as it provided avenue to value publicly the efforts of its human capital and some founding fathers whose efforts brought about the steady growth of the organisation.

    Anekwe said the NIPCO dream, which some people had thought was mission impossible, has become a reality even in the face of some daunting challenges to the delight of numerous stakeholders.

    He singled out the wonderful support of two founding fathers of the company – Alhaji Abdulkadir Aminu and Mr. Tunji Adeniji with whom he travelled across the nooks and crannies of the country soliciting the support of independent fuel marketers to key into the project. “The trio went through lots of tribulations from the onset of the firm but our greatest joy today is that the dream of the promoters had crystallised into reality even beyond our projections especially against the background  of what its peers were able to achieve within a decade,” he said .

    He stated that adversaries of the project at inception are now jostling for recognition claiming to be part of the success story. He said the Board is undaunted and will continue to propel the management to attain greater heights in the industry.

    The Managing Director, Mr. Venkatapathy Venkataraman, noted that as key element in the rising profile of the company, management will continue to provide enabling environment for staff to excel and thrive on continuous basis. He described the event as yet another demonstration of management’s resolve to continually appreciate the workforce’s peerless contribution to the growth of the company stressing the feat had encouraged the company to deliver exceptional results in recent times.

    Venkatapathy enjoined staff to continue to put in their best, adding that management is committed to having a cohesive workforce and intend keeping an open door policy for all staff to improve the communication line in the organisation, adding that all hands should be on deck to maintain the good image the company has built in the last decade.

    The Executive Director, Corporate Services, Alhaji Abdulkadir Aminu, hailed the current transformation in the company.

    Sixteen members of staff that had put in 10 years of service, some founding fathers and expatriates were honoured with special plaques for their sterling contributions to the company.

  • NIPCO gives gas cylinders free in Auchi

    To boost liquefied petroleum gas (LPG) use, the Nigerian Independent Petroleum Company (NIPCO) has given gas cylinders and accessories free to some women in Auchi community of Edo State during its ‘switch over to gas’ campaign.

    NIPCO’s Corporate Affairs Manager, Lawal Taofeek, who represented the company’s Managing Director Mr. Venkataraman Venkatapathy said the event, which took place in the palace of the traditional ruler, the Otaru of Auchi,  Haliru Momoh, was organised with a non-governmental organisation called Gas-to-Health Initiative (GTHI).

    He said the objective of the event was to strengthen calls for a paradigm shift of the market to LPG.

    The Managing Director, Pipelines & Products Marketing Company (PPMC), Prince Haruna Momoh, in his good will message to the beneficiaries of the cylinders, assured the community that the government would continue to support initiatives aimed at promoting safe and healthy use of LPG, which the nation is richly endowed with and the  interest of Nigerians.

    Momoh ,who was represented by the Manager, LPG PPMC, Betty Ugona, said the rural dwellers and the semi-urban communities are main priorities of the government in view of the large cooking they do. ‘’This initiative will encourage them to use gas for their cooking,’’ he said.

    The PPMC chief, who is also the chairman of the Board of Trustees of the GTI, praised NIPCO for supporting the initiative, stressing that the cylinders would help boost efforts of the NGO and, ultimately, deepen gas by beneficiaries.

  • NIPCO reopens, begins loading of petrol

    NIPCO reopens, begins loading of petrol

    The Nigerian Independent Petroleum Company (NIPCO) reopened over the weekend after 13 days of closure, the News Agency Nigeria (NAN) reports.

    An official of the company, who spoke on anonymity, told NAN in Lagos that the company was reopened following the intervention of the State Security Service (SSS).

    “The meeting took place at Abuja last Thursday, where all the aggrieved parties were represented.

    “Although the meeting continues today (Friday), SSS directed that the company should be reopened immediately while amicable resolution of the dispute would be sorted out,” the official.

    The official said the company was reopened at about 10.30 a.m, adding that the loading of petroleum products had started for distribution to marketers.

    He said the reopening of the company would further ease the scarcity of petroleum products experienced in some parts of the country.

    NAN reports that over 200 trucks had been loaded with petroleum products for distribution to marketers.

    It would be recalled that NIPCO was shut by the National Union of Petroleum and Natural Gas Workers (NUPENG) on March 24 following a dispute over who heads the company union.