NNPCL acquires OVH Energy’s downstream assets with millions of dollars

The Nigerian National Petroleum Company Limited (NNPCL) has acquired all 380 Oando retail outlets, aviation and gas brands nationwide from OVH Energy.

Speaking at the unveiling of one of the new NNPC Limited stations formerly Oando in Abuja , the Group Chief Executive Officer NNPC Limited, Mallam Mele Kyari, said: “The acquisition will bring over 380 additional filling stations under NNPC Retail brand in Nigeria and Togo, on our journey to attaining 1,500 stations. We will be the largest petroleum product retail network in Africa.”

Kyari also noted that the acquisition was to strengthen the downstream business portfolio to enhance profitability and guarantee National Energy Security.

“NNPC has under an Accelerated Network Expansion (ANEX) Initiative completed the acquisition of OVH downstream assets including reception jetty (ASPM) with 240,000 metric tons monthly capacity, eight Liquefied Petroleum Gas (LPG) plants, three lubes blending plants, three aviation depots, and 12 warehouses,” he said.

He commended the board for the acquisition just as he lauded President Muhammadu Buhari who is also the Minister of Petroleum for laying the foundation for improving energy access.

“It is absolutely not about assets, we are building relationships. At this moment, we are the largest downstream company in Nigeria and by this merger, we are also likely going to be the largest downstream company in Africa.”

He also assured the 200 million shareholders and Nigerians that the firm will prudently manage the business noting that, “We will make money for NNPC because this is a very profitable business.”

Chairman of the NNPC Ltd Board, Sen. Margery Chuba-Okadigbo, lauded the acquisition deal, saying, “NNPC retail station is now in Togo and we are on our journey to attain 1,500 retail stations. OVH, you have given us so much and we promise that we will look after the investments.”

The Managing Director and CEO of OVH Energy, Huub Stokman, said the acquisition comes at a time when NNPC Limited was accelerating energy transition in line with the Petroleum Industry Act 2021 (PIA).

He said: “With a combined entity, NNPC is well positioned to take the opportunities in a way that it will positively impact the Nigerian oil and gas downstream sector. As a company, OVH Energy always focuses on delivering value to customers.

“With this acquisition as a combined entity, we will get innovative offerings and infrastructure to transform the downstream energy sector not just in Nigeria but also in West Africa.

“The outlets would be rebranded NNPC and a full integration is expected by the end of 2023.”

NNPC, which became a commercial entity in July, already owns more than 500 fuel stations across Nigeria and said it would be ready for an initial public offering by mid next year.