The Nigerian National Petroleum Company Limited NNPCL has acquired the second largest downstream fuel company in Nigeria, the OVH Energy.
OVH Energy is the company behind the Oando retail brand in Nigeria. Its assets comprises of over 350 service stations in Nigeria.
This move by the NNPCL is aimed at positioning itself to become the leading energy company in Nigeria and West Africa while upholding global best practices at service delivery.
At the unveiling ceremony, the Group Chief Executive Officer GCEO of the NNPC Limited Mallam Mele Kyari said in his address that the NNPCL will leverage OVH Energy’s extensive asset base and build on its existing success.
“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.
“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,” he said
“Our goal as NNPC Limited is to become a catalyst for massive improvement within the downstream oil and gas industry therefore, access to the extensive asset base of OVH is our audacious step towards attaining this goal. 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,” Kyari said.
In his remarks, the Chief NNPCL acquires OVH Energy, to be merged with NNPC Retail Limited Executive Officer CEO of OVH Energy Huub Stokman stated that this merger is coming at a very important time in the Nigerian oil industry.
“This acquisition by the 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, at both retail and commercial levels. 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, our customers, staff, and other stakeholders,” he added.
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.
OVH Energy Oando branded retail service stations will be rebranded into the NNPC brand and a full integration is expected by the end of 2023.
