Lawmakers laud Nipco’s increased stake in downstream operations

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The recent acquisition of ExxonMobil’s 60 per cent equity in Mobil Oil Nigeria Plc by NIPCO has demystified the impression by International Oil Companies (IOCs) that it is impossible for indigenous companies to market petroleum products.
 
The Chairman, Petroleum Downstream Committee, House of representatives, Hon. Joseph Akinlaja, who disclosed this during an oversight visit to NIPCO Plc in Lagos, said the feat 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 pioneer foreign companies makes it look like it is an impossible terrain due to their monopoly in the market,” Akinlaja declared
 
“Among the seven foreign companies who ventured into the downstream sector, only Total Plc still remains, others have yielded their proceeds to indigenous companies,” he pointed out.
 
According to him, NIPCO has exemplified the value chain by acquiring Mobil Oil Nigeria Plc to expand its horizon and impact in the downstream sector as a key player.
 
He noted that as an indigenous company, NIPCO has performed creditably in the short period of its existence, adding that the green chamber is proud of the organisation as a local content success in the hydrocarbon industry Akinlaja noted that in spite of the economic recession in the country, NIPCO has not retrenched any staff, and still maintains good housekeeping and high standards in its operations.
 
He also commended its robust presentation at a 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’s modus operandi on the handling of the product.
 
The Group Managing Director, NIPCO, Venkataraman Venkatapathy, said the company is the first indigenous downstream outfit to have a large number of retail outlets of white products and Liquefied Petroleum Gas .
 
“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 whose technical, safety; experienced manpower is very high and is on records,” he stressed Venkataraman noted that despite the high economic recession, employees jobs are maintained with no retrenchment of any sort, but instead had reinvested its profit in Nigeria. 
 
The Group Executive Director, NIPCO, 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 document aspects, which the federal government and the private sector can do to participate effectively in the petroleum 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.“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 Corporate Social Responsibility programmes,” Aminu assured.