Connect with us

Advertisement
Advertisement

Business

NNPC Acquires Over 380 New Retail Outlets From Oando

 

Advertisement

In line with its goal to become a catalyst for massive improvement within the downstream oil and gas industry, The Nigerian National Petroleum Company(NNPC) Limited has acquired OVH Energy Marketing (OVH), owner and operator of the Oando branded retail service stations.

The acquisition has added over 380 filling stations to the NNPC Retail brand in Nigeria and Togo, making it the largest petroleum product retail network in Africa.

During the announcement of the avulsion in Abuja yesterday by the national oil company, Chairman, NNPC Limited, Margery Okadigbo, maintained that the move was to strengthen the company’s downstream business portfolio to enhance profitability and guarantee national energy security.

And that NNPC has under an Accelerated Network Expansion Initiative completed the acquisition of OVH downstream assets, which includes 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.

Advertisement

OVH describes the strategic move as a means to create a 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.

The former owner and operator of the Oando branded retail service stations furthered that through the acquisition, NNPC Retail Limited will build on the existing success of OVH and operate model service outlets leveraging OVH’s extensive asset base and commercial capabilities.

Noting that the transaction also positions NNPC Retail Limited as the fastest growing commercial energy company in its pursuit to guarantee energy security for Nigeria’s growing population and significantly more growth opportunities for the business.

Advertisement

Group Chief Executive Officer (GCEO), NNPC, Mele Kyari, 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 different locations.”

Meaning Oando filling stations would be merged with NNPC Retail Limited, and that access to the extensive asset base of OVH is the audacious step towards attaining the companies of becoming a catalyst for massive improvement within the downstream oil and gas industry.

“We are positive that this is the much-needed transformation required by the sector as it provides us with an integrated platform to attract the right investments which enable the growth of our operations,” the NNPC boss noted.

Advertisement

This acquisition by NNPC according to OVH’s CEO, Huub Stokman, comes at a critical time in the Nigerian energy sector given the overhaul of the petroleum laws (with the recent enactment of the Petroleum Industry Act 2021 ( PIA).

OVH Energy Oando branded retail service stations will be rebranded into the NNPC brand and full integration is expected by the end of 2023. The leadership of the merged entity share a common purpose and is focused on value creation with the strengths of OVH’s operational efficiency and NNPC’s brand,” Stokman added.

 

Advertisement