Oil & Gas
THE Nigerian National Petroleum Company Limited (NNPC LTD.) has completed the acquisition of OVH Energy Marketing Limited (OVHEM) downstream assets under an Accelerated Network Expansion (ANEX) Initiative.
Unveiling the acquisition on Saturday in Abuja, Sen. Margery Okadigbo, NNPC Ltd Board Chairman, said it would strengthen the downstream business portfolio to enhance profitability and guarantee National Energy Security.
The News Agency of Nigeria (NAN) reports that downstream assets acquisition which were from OVHEM, operators of Oando filling stations, include reception jetty (ASPM) with 240,000MT monthly capacity and eight LPG Plants.
Others include three Lubes blending plants, three Aviation Depots, and 12 warehouses.
Okadigbo said the acquisition would bring over 380 additional filling stations under NNPC Retail brand in Nigeria and Togo to its journey of attaining 1,500 stations.
“We will be the largest petroleum product retail network in Africa. We are going to have the Biggest filling station collection in Africa.
“OVH has given us so much to look after the investment we have you on the package to continue to work with us,” Okadigbo said.
Malam Mele Kyari, NNPC Ltd. Group Chief Executive (GCEO), said the merger was achievable through NNPC Ltd 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 the NNPC to consistently provide energy security for Nigeria which involved access to products and management of the every transition.
“By this merger, we are the largest downstream company with robust network in the country and in Africa.
“This is vehicle to ensure we deliver on the energy transition in the country.
“We will use it to deliver Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) into the market.
“Poor citizens who rely on biomass to cook. 70 per cent of Nigerians don’t have access to clean cooking fuel downstream company with robust network in the country and in Africa. This is an opportunity for us to utilise this privilege and expand it.
“Today what we have struggled for years have been attained. We will deliver value to our stakeholders and guarantee energy to all,” he said.
In a remark, Huub Stokman, OVH CEO, said the company was enthusiastic of the future potential and capabilities of the combine entity and was ready to bring efficiency in leading business.
Stokman said this acquisition from NNPC, which would transform downstream energy sector in West Africa, came at a critical time in the Nigerian energy sector and in the light of the enactment of the Petroleum Industry Act 2021 (PIA).
“As the demand is still increasing, also there should be deliberate effort to increase the supply in consumption of Natural Gas energy transition.
“The combined entity will be well positioned to take advantage of these opportunities in a way the will really positively impact oil and gas downstream sector,” he said. (NAN)
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Tags: Accelerated Network Expansion Malam Mele Kyari Muhammadu Buhari NNPC Ltd OVHEM Sen. Margery Okadigbo
