Reps Order NNPC Limited to Hold OVH Acquisition and Probe Deal
The House of Representatives has asked the Nigerian National Petroleum Company Limited (NNPCL) to suspend the acquisition of OVH Energy Marketing, the company behind the Oando Retail brand in East African countries West.
This appeal followed a deliberation on a motion entitled "Need to Investigate the Irregularities and Alleged Corruption in the Nigerian Energy Security Provider, NNPC Retail Limited and the Acquisition of OVH Energy Marketing", moved by Miriam Onuoha (APC, Imo ) and six more on Thursday in plenary.
The suspension directive comes in the context of secret agreements surrounding the acquisition of the company.
Opaque offersLast October, NNPC Limited acquired OVH's downstream business to add over 380 service stations to its portfolio.
But in June, PREMIUM TIMES' investigation into the acquisition revealed the secret deals and complicated ownership structure that left management control of NNPC Retail in the hands of OVH Energy Marketing.
The report also revealed that OVH Energy Marketing has only 94 stations and more than 100 stations have been leased.
Furthermore, the report highlighted how Huub Stoksman, an expat and former CEO of OVH Energy, became the new Managing Director of NNPC Retail, a development that further aggravated the structure of NNPC Retail.
NNPCl Towers, AbujaPREMIUM TIMES also found that the he acquisition of OVH Energy had turned NNPC Retail into a toxic workspace, with managers from the former taking over the operation of the latter.
But despite a freedom of information request, NNPCL kept the details of the acquisition secret, with many shadowy allegations.
MovementTaking the motion on Thursday, Ms. Onuoha highlighted some of the findings of the PREMIUM TIMES report, particularly issues related to ownership structure.
She specifies that the appointment of OVH management as head of NNPC Retail presents a conflict of interest.
"If a company buys more than 50% of the shares of a target company, it effectively takes control of that company, but in this case, it looks like NNPC has taken over OVH Energy, but in operational terms, it's It was OVH Energy that took over the business of NNPC Retail,” Ms. Onuoha said.
Ms. Onuoha criticized the opacity of the acquisition transaction and called for a review of OVH's assets and liabilities before the transaction.
READ ALSO: NNPCL and UTM Offshore sign agreement to build Nigeria's first floating gas plantShe said OVH marketing overvalued its assets to sweeten the deal with NNPC Limited.
"Prior to the acquisition, OVH Energy claimed to have approximately 380 company-owned stations, one jetty (ASPM) WITH 240,000 MT, eight (8) LPG plants, three blending plants lubricants, three aviation and fuel depots and 12 warehouses, while they had only owned 72 stations while others were leased or owned by third parties, the eight LPG plants were leased, 12 listed lubricant warehouses have been leased,” she said.
The House of Representatives has asked the Nigerian National Petroleum Company Limited (NNPCL) to suspend the acquisition of OVH Energy Marketing, the company behind the Oando Retail brand in East African countries West.
This appeal followed a deliberation on a motion entitled "Need to Investigate the Irregularities and Alleged Corruption in the Nigerian Energy Security Provider, NNPC Retail Limited and the Acquisition of OVH Energy Marketing", moved by Miriam Onuoha (APC, Imo ) and six more on Thursday in plenary.
The suspension directive comes in the context of secret agreements surrounding the acquisition of the company.
Opaque offersLast October, NNPC Limited acquired OVH's downstream business to add over 380 service stations to its portfolio.
But in June, PREMIUM TIMES' investigation into the acquisition revealed the secret deals and complicated ownership structure that left management control of NNPC Retail in the hands of OVH Energy Marketing.
The report also revealed that OVH Energy Marketing has only 94 stations and more than 100 stations have been leased.
Furthermore, the report highlighted how Huub Stoksman, an expat and former CEO of OVH Energy, became the new Managing Director of NNPC Retail, a development that further aggravated the structure of NNPC Retail.
NNPCl Towers, AbujaPREMIUM TIMES also found that the he acquisition of OVH Energy had turned NNPC Retail into a toxic workspace, with managers from the former taking over the operation of the latter.
But despite a freedom of information request, NNPCL kept the details of the acquisition secret, with many shadowy allegations.
MovementTaking the motion on Thursday, Ms. Onuoha highlighted some of the findings of the PREMIUM TIMES report, particularly issues related to ownership structure.
She specifies that the appointment of OVH management as head of NNPC Retail presents a conflict of interest.
"If a company buys more than 50% of the shares of a target company, it effectively takes control of that company, but in this case, it looks like NNPC has taken over OVH Energy, but in operational terms, it's It was OVH Energy that took over the business of NNPC Retail,” Ms. Onuoha said.
Ms. Onuoha criticized the opacity of the acquisition transaction and called for a review of OVH's assets and liabilities before the transaction.
READ ALSO: NNPCL and UTM Offshore sign agreement to build Nigeria's first floating gas plantShe said OVH marketing overvalued its assets to sweeten the deal with NNPC Limited.
"Prior to the acquisition, OVH Energy claimed to have approximately 380 company-owned stations, one jetty (ASPM) WITH 240,000 MT, eight (8) LPG plants, three blending plants lubricants, three aviation and fuel depots and 12 warehouses, while they had only owned 72 stations while others were leased or owned by third parties, the eight LPG plants were leased, 12 listed lubricant warehouses have been leased,” she said.
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