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Total, the only remaining multinational player in Nigeria’s downstream has decided to sell off its downstream assets due to the shrinking profit margins at the sub-sector.
About 12 foreign and indigenous firms are said to be in hot race for its multi-billion dollar downstream assets, according to New Telegraph as the French oil multinational mulls total exit from Nigeria’s petroleum product imports, storage and retails sub-sector.
“The divestment of Total’s downstream assets too is on-going. It is a confidential deal, which meetings have been held outside the shores of Nigeria several times with contenders mostly indigenous firms,” a source close to the deal told New Telegraph.
Total declined to comment on the deal because of its confidential nature, but a source at the company confirmed the move to New Telegraph over the weekend.
“There is an on-going negotiation with companies for divestment of our downstream assets, about a dozen of them have submitted proposal and we are making progress on the deal
“The downstream sector is bearish, with profit margin shrinking everyday
“To make the matter worse, the removal of subsidy announced in May was a major turning point in the annals of oil majors participation in the downstream”, the source said.
Related: ExxonMobil Pulls Out of Nigeria's Downstream Oil Sector
About 12 foreign and indigenous firms are said to be in hot race for its multi-billion dollar downstream assets, according to New Telegraph as the French oil multinational mulls total exit from Nigeria’s petroleum product imports, storage and retails sub-sector.
“The divestment of Total’s downstream assets too is on-going. It is a confidential deal, which meetings have been held outside the shores of Nigeria several times with contenders mostly indigenous firms,” a source close to the deal told New Telegraph.
Total declined to comment on the deal because of its confidential nature, but a source at the company confirmed the move to New Telegraph over the weekend.
“There is an on-going negotiation with companies for divestment of our downstream assets, about a dozen of them have submitted proposal and we are making progress on the deal
“The downstream sector is bearish, with profit margin shrinking everyday
“To make the matter worse, the removal of subsidy announced in May was a major turning point in the annals of oil majors participation in the downstream”, the source said.
Related: ExxonMobil Pulls Out of Nigeria's Downstream Oil Sector
