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AfrOil INVESTMENT AfrOil

NNPCL adds 380 Oando filling stations

to retail network via OVH acquisition

NIGERIA NIGERIAN National Petroleum Co. Ltd remarked that it expected NNPCL to “build on
(NNPCL) has acquired OVH Energy Market- the existing success of OVH and operate model
ing (OVH), a Nigerian company that owns and service outlets leveraging OVH’s extensive asset
operates a chain of Oando-branded filling sta- base and commercial capabilities.”
tions and other downstream assets. NNPCL expressed similar sentiments, saying
NNPCL announced the acquisition in a that the acquisition had the potential to make
series of Twitter posts on October 1, and OVH NNPC Retail the largest seller of petroleum
confirmed the deal in a statement issued the products in Africa.
same day. Mele Kyari, the group CEO of NNPCL,
Neither party revealed the value of the deal, described the deal as advantageous for his com-
but NNPCL said it now had access to OVH’s 12 pany’s downstream business. “Our acquisition
warehouses, eight LPG plants, three lubricant of OVH brings more NNPC branded fuel sta-
blending plants, three aviation fuel depots and tions under the NNPC Retail Ltd umbrella,
the Lagos Midstream Jetty owned by OVH’s providing wider access for our customers, an
subsidiary ASPM Ltd. (The reception jetty is the enriched supply chain and product availability
first privately-owned facility of its kind in West across our different locations,” he said.
Africa.) He added: “Our goal as NNPC Ltd is to
Additionally, it noted, the takeover will sup- become a catalyst for massive improvement
port NNPCL’s efforts to grow its downstream within the downstream oil and gas industry;
business by adding several hundred filling therefore, access to the extensive asset base of
stations to the company’s retail network. “The OVH is our audacious step towards attaining
acquisition, which is under our Accelerated this goal. We are positive that this is the much-
Network Expansion (ANEX) initiative, will needed transformation required by the sector,
bring over 380 additional filling stations under as it provides us with an integrated platform to
the NNPC Retail brand in Nigeria and Togo, on attract the right investments which enable the
our journey to attaining 1,500 stations,” NNPCL growth of our operations.”
said on Twitter. Huub Stokman, the CEO of OVH, com-
Meanwhile, OVH said in its statement that mented: “This acquisition by NNPC comes
its filling stations, which are currently operat- at a critical time in the Nigerian energy sector
ing under the Oando brand, were now due to ... We have always focused on a value-driven
be rebranded as NNPC outlets. The process of approach, prioritising the quality of products
integrating these stations into the NNPC Retail and services offered to our customers, at both
chain is slated to be complete by the end of 2023, retail and commercial levels. This acquisition
it noted. enables the combined strengths of both entities,
OVH went on to say that the acquisition to innovate our offerings and infrastructure,
“aims to create the leading downstream energy necessary to transform the downstream energy
company in Nigeria and West Africa.” It also sector in Nigeria and West Africa.” ™

Opening of rebranded Orando station on October 1 (Photo: Twitter/@nnpclimited)

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