By Samuel Bankole
The Nigerian National Petroleum Company Limited (NNPC) has acquired a major downstream player in the Nigerian oil and gas industry, OVH Energy Marketing (OVH) Limited in a landmark deal after the state-owned oil firm was converted to a commercial entity.
OVH is the owner and operator of the Oando-branded retail service stations across the country.
In addition, and to support the combined NNPC Retail Limited operations, NNPC Limited has acquired Apapa SPM Limited (an affiliate of OVH Energy) that owns and manages West Africa’s first privately owned midstream jetty, known as the Lagos Midstream Jetty.
“To strengthen its downstream business portfolio to enhance profitability and guarantee National Energy Security, NNPC Limited has completed the acquisition of OVH Energy Downstream assets.
“These assets include a reception jetty (ASPM) with 240,000MT monthly capacity, 8 LPG Plants, 3 Lubes Blending Plants, 3 Aviation Depots and 12 warehouses.
“The acquisition, which is under our Accelerated Network Expansion (ANEX) Initiative, will bring over 380 additional filling stations under the NNPC Retail brand in Nigeria and Togo, on our journey to attaining 1,500 stations.
“With this merger, we are poised to becoming the largest downstream company in Africa. This is a vehicle for ensuring we deliver on the energy transition goals of our country,” NNPC Group Chief Executive Officer (GCEO) of NNPCL, Mele Kyari.
Kyari said ur 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 different locations.
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With this acquisition, OVH Energy’s Oando- branded retail service stations will be rebranded into the NNPC brand and merged with NNPC Retail Limited with full integration scheduled to take place by the end of 2023.
Kyari said the strategic move is aimed to create the leading downstream energy company in Nigeria and West Africa, driven by operational efficiency, best-in-class management, and physical infrastructure while offering premium petroleum products and related services to customers, in line with global standards.
Through this acquisition, he said the NNPC Retail Limited will build on the existing success of OVH Energy and operate model service outlets leveraging OVH’s extensive asset base and commercial capabilities.
Kyari stated that the NNPCL was bringing to the table, its 45 years of experience and strong capability to bear on the management of the company.
He maintained that securing the country against energy poverty would mean access to petroleum products in addition to managing the energy transition, which he said has become a reality.
“There’s no way you can do this except you have a robust system and processes, except you have a network that will work and you have an institution that can deliver value to its shareholders.
“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. They were our partners and our customers. So, we know their ability,” Kyari explained.
On his part, the CEO OVH Huub Stokman said “this acquisition by NNPC Limited comes at a critical time in the Nigerian energy sector given the overhaul of the petroleum laws (with the recent enactment of the PIA), the continuing increased demand for petroleum products and particularly the deliberate efforts to increase and improve the supply and consumption of natural gas in support of our energy transition goals.”
“We have always focused on a value-driven approach, prioritizing the quality of products and services offered to our customers.
This acquisition enables the combined strengths of both entities, to innovate our offerings and infrastructure, necessary to transform the downstream energy sector in Nigeria and West Africa. It is an exciting time for us all, as we continue to focus on technological enhancement for our customers, staff, and other stakeholders” he added.
