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Nigerian firm, MRS, acquires Chevron downstream company

Posted by By LOUIS IBA on 2008/09/25 | Views: 3041 |

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Nigerian firm, MRS, acquires Chevron downstream company


Nigerian firm, M.R.S. Holdings Limited and Petroci Holdings, have agreed to buy Chevron Nigeria Holdings Limited after going through a highly competitive bidding process that lasted for several months.

Nigerian firm, M.R.S. Holdings Limited and Petroci Holdings, have agreed to buy Chevron Nigeria Holdings Limited after going through a highly competitive bidding process that lasted for several months.

M.R.S. is one the Nigeriaís leading integrated marketing, distribution, shipping, international trading and logistics company.
In a statement on Sunday, Chevron Corporation said it had sold Chevron Nigeria Holdings Limited to MRS Holdings Limited and Petroci Holdings. The two companies had bidded for Chevron Nigeria Holdings under the consortium name, Corlay Global S.A.

The statement, however, clarified that Chevronís upstream operations in Nigeria, which has to do with crude oil exploration and exploitation, were not affected by the sale.
Chevron Nigeria Holdings Limited is a Bermuda company that holds 60 per cent of the issued shares of Chevron Oil Nigeria Plc, which is the publicly listed operator and owner of downstream marketing assets of Chevron in Nigeria.

This acquisition will put the MRS and Petroci consortium in controlling position of over 400 gas stations in Nigeria, currently under ChevronTexaco brand and is considered a landmark achievement in the history of all acquisitions in the downstream business in the country.
According to the Executive Vice President, Global Downstream Operations for Chevron, Mr. Mike Wirth, the sale was in line with the companyís vision of cutting down on cost and maximizing revenue.
"This sale is in line with our ongoing effort to concentrate downstream resources and capital on strategic global assets," Wirth said.

"We are increasing efficiency and improving returns by shrinking our marketing footprint to better align with our refining operations," he added.
Chief Executive Officer, MRS Holdings Limited, Mr. Sayyu Dantata, described the acquisition as a great boost to indigenous firms operating in the downstream sector of the Nigerian oil and gas business.
"We are very pleased to acquire Chevron Nigeria Holdings and this demonstrates further our vision in investing into the future of the downstream oil business in West Africa and its attendant enormous benefits to our dear country.

The quantum of funds committed to this deal, in addition to our recent investments in the floating storage facilities, which have a combined capacity of over 400,000 metric tons, is the first of its kind in the downstream business in West Africa.," said Sayyu Dantata, the CEO and owner of the M.R.S. Holdings Limited.

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