NNPC acquires OVH Energy Limited with 380 additional service stations

The Nigerian National Petroleum Company (NNPC) Limited acquired the downstream assets of OVH Energy Marketing Limited on Saturday.

Assets acquired from the company, which operates Oando gas stations, include a receiving jetty with a monthly capacity of 240,000 metric tons and eight liquefied petroleum gas plants, three lubricant blending plants, three aviation depots and 12 warehouses.

NNPC said the development aims to create a leading downstream energy business in Nigeria and West Africa. He said OVH Energy Oando branded gas stations will be rebranded under his brand and full integration is expected by the end of 2023.

Unveiling the acquisition in Abuja on Saturday, Margery Okadigbo, Chairman of the Board of NNPC Limited, said the acquisition, as part of an Accelerated Network Expansion (ANEX) initiative, would help strengthen NNPC's downstream business portfolio to improve profitability and ensure national energy security.

Ms Okadigbo said the acquisition would bring more than 380 additional service stations under the NNPC retail brand to Nigeria and Togo, as part of our journey towards reaching the 1,500 station targets.

“We will be the largest retail network for petroleum products in Africa,” she said.

“OVH has given us so much to maintain the investment that we have you on the package to continue working with us,” said Ms. Okadigbo.

Mele Kyari, Group CEO of NNPC Limited, says the merger is achievable thanks to NNPC Limited's "robust system and network"

"Through this merger, we are the largest downstream company with a strong network in the country and in Africa," he said.

"This is a vehicle to ensure that we achieve the energy transition in the country.

"We will use it to supply liquefied petroleum gas (LPG) and compressed natural gas (CNG) to the market, as well as to poor citizens who depend on biomass for cooking," he said. declared.

Mr. Kyari said 70% of Nigerians do not have access to clean cooking fuel.

Huub Stokman, CEO of OVHEM Limited, said the company is excited about the potential and future capabilities of the combined entity and is ready to bring efficiencies to the leading business.

"OVH Energy has enriched Nigeria's downstream sector and established an unprecedented supply footprint, distributing over one billion liters of refined petroleum products annually," he said.

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"This acquisition by NNPC Limited came at a critical time in the Nigerian energy sector and in light of the enactment of the Petroleum Industry Act 2021 (PIA).

"As demand continues to increase, there should also be a deliberate effort to increase the supply of natural gas energy transition consumption."

The unveiling ceremony was attended by NNPC Limited Chairman Margary Okadigbo, OVH Energy Managing Director, Huub Stokman, NNPC Group Managing Director, Mele Kyari, Managing Director of Nigeria Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed and Executive Vice Chairman, Federal Competition and Consumer Protection Commission, Babatunde Irukera, among others.

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