The Nigerian National Petroleum Company (NNPC) Limited has acquired OVH Energy Marketing (OVH), the owner and operator of the Oando branded retail service stations, as part of its goal to become a catalyst for massive improvement in the downstream oil and gas industry.
The acquisition has given the NNPC Retail brand over 380 filling stations in Nigeria and Togo, making it Africa’s largest petroleum product retail network.
During the national oil company’s announcement of the avulsion in Abuja yesterday, Chairman, NNPC Limited, Margery Okadigbo, stated that the move was made to strengthen the company’s downstream business portfolio in order to increase profitability and ensure national energy security.
NNPC also completed the acquisition of OVH downstream assets through an Accelerated Network Expansion Initiative, which included the reception jetty (ASPM) with 240,000MT monthly capacity, eight LPG (Liquefied Petroleum Gas) plants, three lubes blending plants, three aviation depots, and 12 warehouses.
The strategic move is described by OVH as a means of establishing a leading downstream energy company in Nigeria and West Africa, driven by operational efficiency, best-in-class management, and physical infrastructure, while providing premium petroleum products and related services to customers in accordance with global standards.
The former owner and operator of Oando-branded retail service stations went on to say that through the acquisition, NNPC Retail Limited will build on OVH’s existing success and operate model service outlets by leveraging OVH’s extensive asset base and commercial capabilities.
Notably, the transaction positions NNPC Retail Limited as the fastest growing commercial energy company in Nigeria, ensuring energy security for the country’s growing population and significantly more growth opportunities for the company.
Mele Kyari, NNPC’s Group Chief Executive Officer (GCEO), stated that “our acquisition of OVH brings more NNPC branded fuel stations under the NNPC Retail Limited umbrella, providing wider access for our customers, an enriched supply chain, and product availability across our various locations.”
That is, Oando filling stations would be merged with NNPC Retail Limited, and access to OVH’s extensive asset base would be a bold step toward the company’s goal of becoming a catalyst for massive improvement in the downstream oil and gas industry.
“We are confident that this is the much-needed transformation that the sector requires because it provides us with an integrated platform to attract the right investments that enable the growth of our operations,” said the NNPC CEO.
According to OVH CEO Huub Stokman, this acquisition by NNPC comes at a critical time in the Nigerian energy sector given the overhaul of petroleum laws (with the recent enactment of the Petroleum Industry Act 2021). ( PIA).
“OVH Energy Oando-branded retail service stations will be rebranded as NNPC, with full integration expected by the end of 2023.” The merged entity’s leadership has a common goal and is focused on creating value by leveraging OVH’s operational efficiency and NNPC’s brand.”