The Nigerian National Petroleum Company Limited (NNPCL) in its drive for downstream expansion, acquired OVH Energy Marketing (OVH), owner and operator of the Oando branded retail service stations.
With the merger, NNPCL now officially controls all Oando retail outlets comprising fuel, and aviation among others, across the country.
Speaking at the rebranding on Saturday in Abuja, the Group Chief Executive Officer (GCEO) NNPCL, Mele Kyari said the acquisition was a strategic move to create 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.
He said the development came on the heels of the mandate given by President Muhammadu Buhari, on the need for the company to provide energy security.
“And that there is no way you can do this except you have the robust systems and processes. You have a network that will work.
“We have struggled with this for many years and we saw the opportunity to latch on to the competencies of the OVH group. We have worked with them. Yes, they were our partners. They are also our customers.
“And ultimately, we knew that this company works. It has a system, it has processes it has a network that has potential to make us achieve our own aspirations to be a global company of choice.”
He noted that the merger is a vehicle to ensuring that the Company delivers on its energy transition goals.
“We will use this vehicle to deliver LPG into the markets, CNG into the market, and also very poor members of our communities who are now relying on biomass to cook. 70% of our people don’t have access to clean cooking fuel,” he added.
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Earlier in his address, Huub Stokman, CEO of OVH said the acquisition came at a critical time in the Nigerian energy sector given the overhaul of the petroleum laws.
“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,” he said.
He further disclosed that the OVH Energy Oando branded retail service stations will be rebranded into the NNPC brand and full integration is expected by the end of 2023.
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.