From Uche Usim, Abuja

In a move towards becoming the leading downstream energy company in Nigeria and West Africa, OVH Energy Marketing (OVH), owner and operator of the Oando branded retail service stations, has been acquired by NNPC limited and will be merged with NNPC Retail Limited (NRL) to realise the ambition.

This strategic move also aims to offer premium petroleum products and related services to customers, in line with global standards.

Speaking at the rebranding event in Abuja on Saturday, the Group Chief Executive Officer of the NNPC, Mr Mele Kyari, noted that through the acquisition, 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.

“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,” Mr Kyari said.

“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.

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“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 explained.

In his remarks at the event, Huub Stokman, CEO of OVH, noted that the acquisition by the NNPC comes at a critical time in the Nigerian energy sector given the overhaul of the petroleum laws (with the recent enactment of the PIA).

He added that the continuing increased demand for petroleum products and particularly the deliberate efforts to increase and improve the supply and consumption of natural gas were consistent with the company’s 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.

OVH Energy Oando branded retail service stations will be rebranded into the NNPC brand and full integration is expected by the end of 2023. 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, 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.