The Nigerian National Petroleum Company (NNPC) has acquired downstream assets of OVH Energy, the company behind the Oando retail brand in Nigeria.
The acquisition was announced on Saturday in Abuja during the unveiling and rebranding of one of the retail stations of Oando to NNPC.
With the merger, NNPCL now officially controls all Oando retail outlets comprising fuel, and aviation among others across Nigeria.
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This strategic acquisition of OVH Energy by NNPC aims to create the leading downstream energy company in Nigeria and West Africa, driven by operational efficiency, best-in-class management, and physical infrastructure while offering premium petroleum products and related services to customers, in line with global standards.
Through this acquisition, NNPC Retail Limited will build on the existing success of OVH and operate model service outlets leveraging OVH’s extensive asset base and commercial capabilities.
The transaction also positions NNPC Retail Limited as the fastest growing commercial energy company in its pursuit to guarantee energy security for Nigeria’s growing population and significantly more growth opportunities for the business.
Speaking at the rebranding ceremony, the Group Chief Executive Officer (GCEO) NNPCL, Mele Kyari said the acquisition of OVH Energy was a strategic move to create the leading downstream energy company in Nigeria and West Africa, driven by operational efficiency, best-in-class management, physical infrastructure while offering premium petroleum products and related services to customers, in line with global standards.
He stated that the acquisition came on the heels of the direction issued by President Muhammadu Buhari, on the need for the company to provide energy security.
In his words, “And that there is no way you can do this except you have the robust systems and processes. You have a network that will work.
“We have struggled with this for many years and we saw the opportunity to latch on to the competencies of the OVH group. We have worked with them. Yes, they were our partners. They are also our customers.
“And ultimately, we knew that this company works. It has a system, it has processes it has a network that has potential to make us achieve our aspirations to be a global company of choice.”
Mr. Kyari also noted that the merger is a vehicle to ensure that the Company delivers on its energy transition goals.
“We will use this vehicle to deliver LPG into the markets, CNG into the market, and also very poor members of our communities who are now relying on biomass to cook. 70% of our people don’t have access to clean cooking fuel,” he added.