FastNews reports that in an effort to expand the company’s portfolio, the Nigerian National Petroleum Company Limited (NNPC) yesterday made the announcement in Abuja that it had purchased OVH Energy from Oando.
The licensee for the Oando retail brand is OVH Energy Marketing (OVHEM) Limited, while ASPM Limited is in charge of maintaining the Lagos Midstream Jetty.
The new transaction adds OVH downstream assets to the current NNPC downstream business, comprising a reception jetty (ASPM) with a 240,000MT monthly capacity, eight LPG plants, three lube blending plants, three aviation depots, and twelve warehouses.
The acquisition would also bring over 380 additional filling stations under the NNPC Retail brand in Nigeria and Togo, bringing the national oil company’s outlets to 1,500 stations.
Speaking at an event to welcome OVH Energy to NNPC, the Group Chief Executive of the company Mele Kyari sees the new acquisition as a step toward growth and a way of ensuring energy security and making money for Nigerians.
“As of today at this moment, we’re the largest downstream company in the country. We also know that by this partnership; by this acquisition; by this merger, that’s what we want to call it. We’re also very likely to be the largest downstream company in Africa.
Kyari decried the reliance of over 70 percent of Nigerians on biomass for cooking, stressing that the people deserve clean cooking to mitigate the impacts of climate change.
He disclosed that the NNPC would not disrupt the OVH workforce, instead, it would integrate and work with them.
Chief Executive Officer, OVH Energy, Huub Stokman said the acquisition came at a critical time in the history of Nigeria’s energy sector, especially with the enactment of the PIA.
He added that the progress made by the company over years would have been impossible without the resilience of the workforce.
He noted the need to prioritize natural gas, especially in a bid to achieve energy transition goals.