Forte Oil Plc has formerly announced its plan to restructure its operations by divesting from its upstream services and power generating businesses and the sale of its downstream business in Ghana.
The decision, supported by the company’s shareholders, would see Forte Oil streamline its operations and focus on its Nigerian downstream marketing business.
According to details of a disclosure sent to the Nigerian Stock Exchange by the company on Thursday, shareholders authorised the board of the company to sell its stakes in Forte Upstream Services Limited, Amperion Power Distribution Limited and AP Oil & Gas Ghana Limited.
The resolution was made at the annual general meeting of the firm, which held in Lagos.
The meeting also mandated the board of directors to invest the net proceeds from the divestments in the downstream marketing business.
The company said its decision to divest from upstream services and power generating businesses will boost its distributable earnings for the benefit of shareholders.
Earlier, the company had said that due to the significant changes in the oil and gas industry in recent years, only downstream operators with huge investments in both storage and distribution infrastructures can remain competitive and operationally efficient in the long run.