Home Energy assets NNPC acquires assets of OVH Energy Marketing – WorldStage

NNPC acquires assets of OVH Energy Marketing – WorldStage


Senator Margery Okadigbo, Chairman of the Board of NNPC Ltd, Malam Mele Kyari, GCEO NNPC with other officials during the unveiling of the acquisition of OVH energy, operators of Oando

WorldStage Newsonline– The Nigerian National Petroleum Company Limited (NNPC LTD.) has completed the acquisition of the downstream assets of OVH Energy Marketing Limited (OVHEM) under an Accelerated Network Expansion (ANEX) initiative.

Unveiling the acquisition on Saturday in Abuja, Senator Margery Okadigbo, Chairman of the Board of NNPC Ltd, said it would strengthen the downstream business portfolio to improve profitability and ensure national energy security.

The acquisition of downstream assets that came from OVHEM, operator of Oando service stations, includes a reception jetty (ASPM) with a monthly capacity of 240,000 MT and eight LPG plants.

Others include three lubricant blending plants, three aviation depots and 12 warehouses.

Okadigbo said the acquisition would bring more than 380 additional service stations under the NNPC Retail brand in Nigeria and Togo to reach 1,500 stations.

“We will be the largest petroleum products retail network in Africa. We are going to have the largest collection of gas stations in Africa.

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

Malam Mele Kyari, Group Managing Director of NNPC Ltd. (GCEO), said the merger was feasible due to NNPC Ltd’s robust system and network, being an institution with the capabilities to deliver to shareholders.

Kyari said the acquisition was in line with President Muhammadu Buhari’s zeal for NNPC to consistently deliver Nigeria’s energy security, which involved accessing commodities and managing every transition.

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

“It’s a way to ensure that we deliver the energy transition in the country.

“We will use it to market liquefied petroleum gas (LPG) and compressed natural gas (CNG).

“Poor citizens who depend on biomass for cooking. 70% of Nigerians lack access to a clean cooking fuel downstream business with a strong network in the country and in Africa. This is an opportunity for us to use this privilege and extend it.

“Today, what we have struggled for years has been achieved. We will bring value to our stakeholders and secure energy for all,” he said.

In a remark, Huub Stokman, CEO of OVH, said the company was excited about the future potential and capabilities of the combined entity and was ready to bring efficiencies to cutting-edge businesses.

Stokman said this acquisition from NNPC, which would transform the downstream power sector in West Africa, came at a critical time in the Nigerian power 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 combined entity will be well positioned to take advantage of these opportunities in a way that will have a truly positive impact on the downstream oil and gas sector,” he said.