By Adedapo Adesanya
OVH Energy Marketing, owner and operator of Oando-branded gas stations, has been acquired by the Nigerian National Petroleum Company (NNPC) Limited.
The downstream assets acquired by NNPC Limited will merge into NNPC Retail Limited (NRL).
This strategic move aims to create the leading downstream energy company in Nigeria and West Africa, focusing on operational efficiency, better management and physical infrastructure while delivering superior quality petroleum products and related services to customers in accordance with global standards.
Through this acquisition, NNPC Retail Limited will build on OVH’s existing success and operate model retail outlets leveraging OVH’s extensive asset base and business capabilities.
The transaction also positions NNPC Retail Limited as the fastest growing commercial energy company in its quest to ensure energy security for Nigeria’s growing population and many more growth opportunities for the business.
“Our acquisition of OVH brings more NNPC-branded service stations under the NNPC Retail Limited umbrella, providing broader access to our customers, an enriched supply chain and product availability across our various locations,” said Mr. Mele Kyari, CEO of NNPC Ltd. .
“Our goal as NNPC Limited is to become a catalyst for massive improvements within the downstream oil and gas industry. Therefore, gaining access to OVH’s vast asset base is our bold step towards achieving this goal.
“We are convinced that this is the transformation that the sector badly needs, as it provides us with an integrated platform to attract the right investments, which enables the growth of our operations,” he said. added.
“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 PIA), the continued increase in demand for petroleum products and in particular deliberate efforts to increase and improve the supply and consumption of natural gas in the service of our energy transition objectives,” said Mr. Huub Stokman, CEO of OVH.
“We have always focused on a value-driven approach, prioritizing the quality of products and services offered to our customers, both at the retail and trade level.
“This acquisition enables the combined strengths of both entities to innovate our offerings and infrastructure, needed to transform the downstream energy sector in Nigeria and West Africa. This is an exciting time for all of us as we continue to focus on improving technology, our customers, our staff and other stakeholders,” he added.
OVH Energy Oando-branded service stations will be rebranded as NNPC, with full integration expected by the end of 2023.
The leaders of the merged entity share a common objective and are focused on creating value with the strengths of the operational efficiency of OVH and the NNPC brand.
Additionally, and to support the combined operations of NNPC Retail Limited, NNPC Limited has acquired Apapa SPM Limited (a subsidiary of OVH Energy) which owns and operates West Africa’s first private midstream jetty, known as from Lagos Midstream Jetty.
