The recent acquisition of ExxonMobil’s 60% equity in Mobil Oil Nigeria Plc by NIPCO has demystified the impression by International Oil Companies (IOCs) that it is an impossible terrain to market petroleum products by indigenous oil companies.
The Chairman, Petroleum Downstream Committee, House of Representatives, Joseph Akinlaja, who disclosed this during an oversight visit to NIPCO PLC in Lagos said the feat of the company is commendable and a big boost for higher indigenous stake in the nation’s oil and gas industry .
“ There is no rocket science in selling white products as the pioneers foreign companies make it look like it is an impossible terrain due to their monopoly in the market, “Akinlaja said.
He said, ‘’Among the seven foreign companies who ventured into the downstream sector, only Total plc still remain, others have yielded their proceeds to indigenous companies.”
According to him, NIPCO has exemplified the value chain by acquiring Mobil oil Nigeria Plc to expand their horizon and impact in the downstream sector as a key player.
He noted that as an indigenous company in the sector, NIPCO has performed creditably in the short period of its existence, adding that the green chamber is proud of the organization as a show piece local content in the hydrocarbon industry
Akinlaja said that in spite of the economic recession in the country, the company has not retrenched any staff and still maintains good housekeeping and high standards in its operations.
He also commended the robust presentation of the company at the recent public hearing of the house on kerosene explosions, adding that the visit was to see for themselves the practicability of the suggestions based on NIPCO modus operandi on the handling of the product .
In his remarks, Group Managing Director , NIPCO , Mr. Venkataraman Venkatapathy said the company has become the first indigenous downstream outfit to have high influx of retail outlets of white products and LPG to its name.
He said,“It is also a proud achievement that Nipco won the bid to acquire Mobil Plc not only because of our push, but amongst all, we were seen as a company who’s technical, safety; experienced man power is very high and is on records.”
Venkataraman noted that despite economic recession, employees’ jobs are maintained with no retrenchment of any sort from Nipco Plc adding that more importantly, the company had reinvested its profit in the country.
The Group Executive Director ,NIPCO ,Alhaji Abdulkadir Aminu, who was part of the reception for the visiting lawmakers, said stakeholders in the industry need to come together to state their challenges and analyze in documentating the aspects which the Federal Government can do;as well as the private sector to participate
effectively in the hydrocarbon industry.
He assured that NIPCO, which prides itself as the only marketing company that gave the highest equity participation to marketers in the ownership of the company, will never let Nigerians down in its operations.
“We will also increase our participation in the oil and gas industry in all aspect, as we add value to the common
man through our various CSR programmes “, the GED assured.