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NNPC acquires OVH Energy downstream assets

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, NNPC Board Chairman, Mrs. Margery Okadigbo, said it would strengthen the downstream business portfolio to enhance profitability and guarantee national energy security.

The downstream assets acquisition, which were from OVHEM, operators of Oando filling stations, include a 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 will bring over 380 additional filling stations under the 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, and we shall look after the investment; we have you on the package to continue to work with us,” Okadigbo said.

Group Chief Executive (GCEO), Mele Kyari, said the merger was achievable through NNPC Ltd robust system and network, being an institution with the capabilities to deliver to shareholders.

This is a 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.

Kyari said the acquisition was in line with President Muhammadu Buhari’s zeal for the NNPC to consistently provide energy security for Nigeria, which involves access to products and management of the very transition.

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

“This is a 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 rely on biomass to cook 70 per cent of Nigerians don’t have access to clean cooking. This is an opportunity for us to utilise 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, OVH CEO, Huub Stokman, said the company is enthusiastic of the future potential and capabilities of the combined entities and ready to bring efficiency in leading business.

Stokman said this acquisition by NNPC, which will transform the 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 (PIA) 2021.

“As the demand is still increasing, also, there should be deliberate efforts to increase the supply and consumption of natural Gas for energy transition.

“The combined entity will be well positioned to take advantage of these opportunities in a way that will positively impact the oil and gas downstream sector,” he said.

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