The Nigerian National Petroleum Company (NNPC) Limited on Saturday acquired OVH Energy Marketing Limited’s downstream assets.
The assets acquired from the company, which operates Oando filling stations, include a reception jetty with 240,000 metric tonnes monthly capacity and eight liquefied petroleum gas plants, three lubes blending plants, three aviation depots, and 12 warehouses.
NNPC said the development was aimed at creating a leading downstream energy firm in Nigeria and West Africa. It said OVH Energy Oando branded retail service stations will be rebranded into its brand, and full integration is expected by the end of 2023.
Unveiling the acquisition in Abuja on Saturday, Margery Okadigbo, the board chairman of NNPC Limited, said the acquisition, under an Accelerated Network Expansion (ANEX) Initiative, would help strengthen NNPC’s downstream business portfolio to enhance profitability and guarantee national energy security.
Mrs Okadigbo said the acquisition would bring over 380 additional filling stations under the NNPC retail brand in Nigeria and Togo, on our journey to attaining 1,500 stations targets.
“We will be the largest petroleum product retail network in Africa,” she said.
“OVH has given us so much to look after the investment we have you on the package to continue to work with us,” Mrs Okadigbo said.
Mele Kyari, the group chief executive officer of NNPC Limited, said the merger was achievable through NNPC Limited’s “robust system and network”.
“By this merger, we are the largest downstream company with a robust network in the country and Africa,” he said.
“This is a vehicle to ensure we deliver on the energy transition in the country.
“We will use it to deliver Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) into the market and also to poor citizens who rely on biomass to cook,” he said.
Mr Kyari said 70 per cent of Nigerians don’t have access to clean cooking fuel.
Huub Stokman, the CEO of OVHEM Limited, said the company was enthusiastic about the future potential and capabilities of the combined entity and was ready to bring efficiency to the leading business.
“OVH Energy has enriched Nigeria’s downstream sector and established an unparalleled supply footprint, distributing over 1 billion litres of refined petroleum products annually,” he said.
“This acquisition by NNPC Limited came at a critical time in the Nigerian energy sector and in light of the enactment of the Petroleum Industry Act 2021 (PIA).
“As the demand is still increasing, also there should be deliberate effort to increase the supply in consumption of natural gas energy transition.”
The unveiling ceremony was attended by the board Chairman of the NNPC Limited, Margary Okadigbo, the Chief Executive Officer of OVH Energy, Huub Stokman, the Group Chief Executive Officer of the NNPC, Mele Kyari, the Chief Executive of the Nigeria Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed and the Executive Vice Chairman, Federal Competition and Consumer Protection Commission, Babatunde Irukera among others.
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