The Nigerian National Petroleum Company (NNPC) Limited has acquired OVH Energy, owner and operator of the Oando branded retail service stations.
Disclosing this in a statement on Saturday, OVH Energy said it will be merged with NNPC Retail Limited (NRL).
The company said the development was aimed at creating a leading downstream energy firm in Nigeria and West Africa, which is driven by operational efficiency, best-in-class management, and physical infrastructure while offering premium petroleum products and related services to customers.
Huub Stokman, chief executive officer, OVH Energy, said the move will help to improve the supply and consumption of natural gas.
“This acquisition by 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,” Stokman said.
“We have always focused on a value-driven approach, prioritising the quality of products and services offered to our customers.
“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.
NNPC Limited Acquires OVF Energy, Says It Provides Platform To Attract Investment
“It is an exciting time for us all, as we continue to focus on technological enhancement 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, staff, and other stakeholders.”
According to the statement, OVH Energy Oando branded retail service stations will be rebranded into the NNPC brand, and full integration is expected by the end of 2023.
It added that 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.
In addition, and to support the combined NNPC Retail Limited operations, it said; ” the 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.”
Also speaking on the development, Mele Kyari, group chief executive officer, NNPC Limited, said the 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.
Kyari said 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,” Kyari said.
“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.
“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.”
Source: The Cable