Forte Oil Plc, Nigeria’s oil and gas company, has announced to sell its upstream services and power operations in Nigeria and divest from Ghana to focus on its main fuel distribution operation
The decision comes as a contrary, indicating a shift in the earlier goals of the company to continue to acquire marginal oilfields to increase its upstream businesses.
As reported by Reuters, Forte Oil’s Ghana unit has been running in losses over the last three years and has uncollectible trade debts, mainly because of the difficult economic conditions in the country.
The decision to divest from Ghana is seen to expand the company’s downstream fuel distribution business and to invest in storage infrastructure, according to the source.
Headquartered in Lagos, Forte Oil mainly operates in Nigeria’s oil and gas sector. The company markets premium motor spirit (PMS), automotive motor oil (Diesel), dual-purpose kero (DPK), fuel oils and Jet A-1 fuel amongst others. In addition, the company also provides well production chemicals and drilling fluids to Nigeria’s petroleum upstream operators through its upstream services subsidiary, Forte Upstream Services.
