The Nigerian National Petroleum Company (NNPC) Limited has acquired OVH Energy Marketing (OVH), the owner and operator of the Oando-branded retail service stations. This move is in line with the company’s intention to act as a catalyst for significant improvement in the downstream oil and gas industry.
Over 380 new filling stations have been added to the NNPC Retail brand in Nigeria and Togo as a result of the acquisition, making it the largest petroleum product retail network in Africa.
Margery Okadigbo, Chairman of NNPC Limited, maintained that the move was intended to strengthen the company’s portfolio of downstream businesses in order to enhance profitability and ensure national energy security when the national oil company made the announcement of the acquisition yesterday in Abuja.
In addition, the reception jetty (ASPM) with a monthly capacity of 240,000 MT, eight LPG (Liquefied Petroleum Gas) plants, three lubes blending plants, three aviation depots, and twelve warehouses were acquired by NNPC as part of an Accelerated Network Expansion Initiative.
OVH says that the strategic move is a way to build a leading downstream energy company in Nigeria and West Africa based on operational efficiency, best-in-class management, and physical infrastructure. At the same time, the company wants to provide customers with premium petroleum products and related services that meet global standards.
The former owner and operator of Oando-branded retail service stations stated that NNPC Retail Limited will capitalize on OVH’s extensive asset base and commercial capabilities by operating model service outlets following the acquisition.
Taking note of the fact that the transaction also positions NNPC Retail Limited as the commercial energy company with the fastest growth in its pursuit of energy security for Nigeria’s expanding population and significantly more growth opportunities.
Mele Kyari, NNPC’s Group Chief Executive Officer (GCEO), stated that “our acquisition of OVH brings more NNPC branded fuel stations under the umbrella of NNPC Retail Limited, providing wider access for our customers, an enhanced supply chain, and product availability across our various locations.”
This implies that NNPC Retail Limited and Oando filling stations would merge, and that gaining access to OVH’s extensive asset base is the bold step toward achieving the companies’ goal of becoming a catalyst for significant improvement in the downstream oil and gas industry.
The head of the NNPC made the following statement: “We are positive that this is the much-needed transformation required by the sector because it provides us with an integrated platform to attract the right investments that enable the growth of our operations.”
Huub Stokman, CEO of OVH, said that this acquisition by NNPC comes at a crucial time for the Nigerian energy sector because the Petroleum Industry Act 2021 (PIA) has changed the law on petroleum.
The NNPC brand will replace the OVH Energy Oando brand at retail service stations, and full integration is anticipated by the end of 2023.Stokman added, “The leadership of the merged entity is focused on creating value with the strengths of OVH’s operational efficiency and NNPC’s brand.” They share a common goal.