The Nigerian National Petroleum Company (NNPC) Limited has announced the acquisition of OVH Energy Marketing, owner and operator of the Oando branded retail service stations to become Africa’s largest petroleum products’ retailer.
This was revealed by the Chairman Chairman of NNPC Limited, Margery Okadigbo, while speaking on the development in Abuja on Saturday.
Okaigbo said, “In order to strengthen our downstream business portfolio to enhance profitability and guarantee national energy security, NNPC has under an Accelerated Network Expansion Initiative completed the acquisition of OVH downstream assets.
“This 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.
“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.”
On his part, the Group Chief Executive Officer, NNPC, Mele Kyari, said Oando filling stations would be merged with NNPC Retail Limited.
He stressed that through the acquisition, NNPC Retail Limited would build on the existing success of OVH and operate model service outlets leveraging OVH’s extensive asset base and commercial capabilities.
“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,” Kyari stated.
Speaking, the Chief Executive Officer, OVH Marketing, Huub Stokman, said the acquisition by NNPC came 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.
Reacting to the development, an energy market analyst, Halidu Shuaibu said it is a healthy news given the nature of the market and the experience of the NNPC, noting that this would inject good resources into the market.