NNPC Limited Acquires OVH Energy Downstream Assets to become largest petroleum Retail Network in Africa





NNPC Limited Acquires Oando-OVH Energy Downstream Assets to become largest petroleum Retail Network in Africa

By Oluwatosin Emmanuel


Oando crisis has been an advantage for the newly license NNPC Limited to become the Largest petroleum Retail Network in the continent of Africa via the purchase of OVH Energy assets.


In order to strengthen its downstream business portfolio to enhance profitability & guarantee National Energy Security, NNPC Limited has completed the acquisition of OVH Energy Downstream assets.


OVH Energy has the largest distribution footprint in Nigeria with over 1,500 trucks, 50 million liters in tank storage capacity, over 400 retail station outlets and the he first privately owned mid-stream jetty in West Africa. In 2019, Oando successfully divested Oando Marketing Limited to the Vitol Group and Helios Investment Partner, resulting in the formation of OVH Energy for ~$461m.

 Today Oando is known as an upstream company with interests in downstream. The company's dominance in the upstream sector was via another first for an indigenous company.

OVH Energy Marketing (OVH) owner and operator of the Oando branded retail service stations, has been acquired by NNPC limited, and will be merged with NNPC Retail Limited (NRL). 

This strategic move aims 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.




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.



“Our acquisition of OVH, brings more NNPC branded fuel stations under the NNPC Retail Limited umbrella, providing wider access for our customers, an enriched supply chain and product availability across our different locations”, said Mele Kolo Kyari, GCEO NNPC Ltd. 



“Our goal as NNPC Limited is to become a catalyst for massive improvement within the downstream oil and gas industry therefore, access to the extensive asset base of OVH is our audacious step towards attaining this goal. We are positive that this is the much-needed transformation required by the sector as it provides us with an integrated platform to attract the right investments which enables the growth of our operations”.



These assets include a reception jetty (ASPM) with 240,000MT monthly capacity,  8 LPG Plants, 3 Lubes Blending Plants, 3 Aviation Depots and 12 warehouses.



"The acquisition, which is under our Accelerated Network Expansion (ANEX) Initiative, will bring over 380 additional filling stations under the NNPC Retail brand in #Nigeria & #Togo, on our journey to attaining 1,500 stations." 

In addition, and to support the combined NNPC Retail Limited operations, NNPC Limited has acquired Apapa SPM Limited (an affiliate of OVH Energy) that owns and manages West Africa's first privately owned midstream jetty, known as the Lagos Midstream Jetty.


"With this development, we are poised to becoming the largest petroleum products Retail network on the African continent." NNPC Limited declared



This acquisition by NNPC comes at a critical time in the Nigerian energy sector given the overhaul of the petroleum laws (with the recent enactment of the PIA), the continuing increased demand for petroleum products and particularly the deliberate efforts to increase and improve the supply and consumption of natural gas in support of our energy transition goals” says Huub Stokman, CEO OVH.

 “We have always focused on a value driven approach, prioritizing the quality of products and services offered to our customers, at both retail and commercial levels. This acquisition enables the combined strengths of both entities, to innovate our offerings and infrastructure, necessary to transform the downstream energy sector in Nigeria and West Africa. It is an exciting time for us all, as we continue to focus on technological enhancement, our customers, staff, and other stakeholders” he added.

OVH Energy Oando branded retail service stations will be rebranded into the NNPC brand and a full integration is expected by the end of 2023. The leadership of the merged entity share a common purpose and is focused on value creation with the strengths of OVH’s operational efficiency and NNPC’s brand.



OVH Energy has enriched Nigeria’s downstream sector and established an unparalleled supply footprint, distributing over 1 billion litres of refined petroleum products annually through the Oando retail brand. 

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