NNPC acquires OVH Energy, becomes leading petroleum retail product in Africa

NNPC acquires OVH Energy, becomes leading petroleum retail product in Africa

Nigerian energy marketing company with branches in Ghana and Togo, OVH Energy Limited has revealed on Saturday in a press release about its acquisition by Nigerian National Petroleum Company (NNPC) which would be merged with NNPC Retail Limited (NRL). This is aimed at “creating the leading downstream energy company in Nigeria and West Africa, driven by operational efficiency, best in class management, physical infrastructure while offering premium petroleum products and related services to customers, in line with global standards.”

With the disruption of renewable solar energy innovations still at its infancy in Africa, crude oil, among others still remains an appreciable energy source especially in Nigeria’s Niger Delta of which OVH Energy was founded in 1956 under ESSO West Africa – the same time oil was discovered in commercial quantities in the country.
Amidst plans to attain Sustainable Development Goals (SDG) 7: “affordable and clean energy” by 2030 – only eight years from now – Nigeria is still exploring its oil sector. Although, leading oil company in Nigeria, Shell recently acquired West African solar company, Daystar Power. Hands are on deck to see how Africa, particularly Nigeria transitions into maximizing potentials of solar energy.

After rebranding as Oando PLC in 2003, it has successfully deployed operations in the upstream and downstream sector – Upstream: Oando Energy Resources (OER, The leading indigenous exploration and production company in Nigeria) and Downstream: Oando Vitol and Helios (OVH Energy), Oando Trading. In pursuit of becoming Nigeria’s leading petroleum energy supplier, the acquisition provided NNPC Retail limited the avenue to leverage on OVH’s extensive assets and commercial capabilities.

Speaking on the development, Group Chief Executive Officer (GCEO) for NNPC Ltd, Mele Kolo Kyari said that: “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”.

“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 enables the growth of our operations,” he added.

Also commenting on the development, CEO OVH, Hubb Stokman noted that the increasing demand for petrol and the recent enactment of Petroleum Industry Act 2021 (PIA) channels the acquisition at such a critical time.

“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.

Chairman, NNPC Limited, Margery Okadigbo said the acquisition of OVH assets positions the national oil company as the largest petroleum products’ retailer in Africa.

“In order to strengthen our 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,” she said.

“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,” Okadigbo added.