As part of an effort to deepen its retail services in the country, the Nigerian National Petroleum Corporation (NNPC) Limited has acquired the Oando retail brand, OVH Energy Marketing.
OVH Energy is the owner and operator of the Oando branded retail service stations. OVH will be merged with NNPC Retail Limited.
Announcing the new business at the weekend, NNPC Limited said the acquisition will become the biggest downstream company in Africa in its pursuit to guarantee energy security for Nigeria’s growing population.
Speaking at the event, NNPC Group Managing Director, Mele Kyari, said the acquisition provides more NNPC branded fuel stations, wider access for existing customers as well as an enriched supply chain and product availability across various 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,” he said.
The chief executive officer of OVH Energy, Huub Stokman said both entities will innovate their infrastructure to transform the downstream energy sector in Nigeria and West Africa.
He says; “This acquisition by NNPC Limited comes at a critical time in the Nigerian energy sector given the overhaul of the petroleum laws, with the recent enactment of the PIA, the continuing increased demand for petroleum products, and particularly the deliberate efforts to increase and improve the supply and consumption of natural gas in support of our energy transition goals.”
During the event, the NNPC Board Chairman, Senator Margery Chuba-Okadigbo, said as a result of the acquisition, additional 380 filling stations would be added to what the NNPC had, adding that with this, the aspiration of the National Oil Company to have 1,500 retail fuel station would soon be achieved.
According to her, other assets include a reception jetty with 240,000 metric tons monthly capacity, 8 liquefied petroleum gas plants, 3 lube blending plants, 3 aviation depots, and 12 warehouses.
NNPC Limited currently operates over 500 outlets across the country, including its 12 floating mega stations, which cater to riverine areas.
Nigeria’s downstream sector is riddled with some challenges including low investments, policy implementation delays, petroleum products smuggling, lack of adequate infrastructure, and many more.
NNPC Limited was transformed into a limited liability company in July 2022.
