JUST IN: NNPC Ltd acquires 380 Oando stations, other assets nationwide
The Nigerian National Petroleum Company Limited (NNPCL) has acquired the 380 Oando outlets, the country’s aerospace and gas brands from OVH Energy.
Speaking at the unveiling of one of the new NNPC Ltd formerly Oando stations in Abuja on Saturday, NNPC Limited Group Managing Director Mele Kyari said: “The acquisition will bring over 380 additional service stations under the NNPC Retail in Nigeria and Togo. , in our journey to reach 1,500 stations. We will be the largest petroleum products retail network in Africa.
Kyari also noted that the acquisition aims to strengthen the downstream business portfolio to improve profitability and ensure national energy security.
“NNPC has, as part of an Accelerated Network Expansion (ANEX) initiative, completed the acquisition of OVH’s downstream assets, including a receiving jetty (ASPM) with a monthly capacity of 240,000 tonnes metric plants, eight liquefied petroleum gas (LPG) plants, three lubricant blending plants, three aviation depots, and 12 warehouses,” he said.
He praised the board for the acquisition, just as he praised President Muhammadu Buhari, who is also the oil minister, for laying the foundations for improving access to energy.
“It is absolutely not about assets, we are building relationships. Right now we are the biggest downstream company in Nigeria and through this merger we are also going to probably be the biggest downstream company in Africa as well.
He also assured the 200 million shareholders and Nigerians that the company will carefully manage the business, noting that “we will make money for NNPC as it is a very profitable business.”
NNPC Ltd Chairman of the Board, Senator Margery Chuba-Okadigbo, welcomed the acquisition agreement saying, “The NNPC retail station is now in Togo and we are on our way to reach 1,500 retail stations. OVH, you have given us so much and we promise you that we will watch over the investments.
OVH Energy Managing Director and CEO Huub Stokman said the acquisition comes at a time when NNPC Ltd is accelerating the energy transition in line with the Petroleum Industry Act 2021 (PIA).
He said, “With a combined entity, NNPC is well placed to seize opportunities in a way that will positively impact Nigeria’s downstream oil and gas sector. As a company, OVH Energy is always focused on creating value for its customers.
“With this acquisition as a combined entity, we will secure innovative offerings and infrastructure to transform the downstream energy sector not only in Nigeria but also in West Africa.”