NNPC Purchases Downstream Assets From OVH

NNPC Purchases Downstream Assets From OVH

In its effort to expand downstream, the Nigerian National Petroleum Company Limited (NNPCL) purchased OVH Energy Marketing (OVH), owner and operator of the retail service stations bearing the Oando brand.

As a result of the transaction, NNPCL now has legal ownership over all Oando retail locations nationwide, including those selling petroleum and aviation, among other things.

Mele Kyari, Group Chief Executive Officer (GCEO) of NNPCL, said the acquisition was a strategic move to create the leading downstream energy company in Nigeria and West Africa, driven by operational efficiency, best-in-class management, physical infrastructure, and offering premium petroleum products and related services to customers, in accordance with global standards. Kyari was speaking at the rebranding on Saturday in Abuja.

According to him, the move followed President Muhammadu Buhari’s directive that the business must ensure energy security.

“And that there is no way you can do this except you have the robust systems and processes. You have a network that will work.

“We have struggled with this for many years and we saw the opportunity to latch on to the competencies of the OVH group. We have worked with them. Yes, they were our partners. They are also our customers.

“And ultimately, we knew that this company works. It has a system, it has processes it has a network that has potential to make us achieve our own aspirations to be a global company of choice.”

He pointed out that the merger is a means of ensuring that the Company meets its objectives for the energy transition.

“We will use this vehicle to deliver LPG into the markets, CNG into the market, and also very poor members of our communities who are now relying on biomass to cook. 70% of our people don’t have access to clean cooking fuel,” he added.

Huub Stokman, CEO of OVH, stated earlier in his speech that the acquisition occurred at a crucial time for the Nigerian oil sector due to the revision of the petroleum regulations.

“We have always focused on a value-driven approach, prioritizing the quality of products and services offered to our customers, at both retail and commercial levels,” he said.

He also said that the retail service stations with the OVH Energy Oando brand will change to the NNPC brand, with full integration anticipated by the end of 2023.

Additionally, in order to support the consolidated NNPC Retail Limited operations, NNPC Limited purchased Apapa SPM Limited (an entity of OVH Energy), which is the owner and operator of the Lagos Midstream Jetty, the first privately owned midstream jetty in West Africa.

 

 

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