NNPC Acquires Oando Petrol Stations, Jetty, Pays N140.55 Billion as PH Refinery Continues Test Run
- The Nigerian National Petroleum Company Limited (NNPCL) has acquired 380 retail stations belonging to Oando
- NNPCL disclosed in its financial statement that it paid N140.55 billion for the acquisition
- The development comes as oil marketers have expressed doubt on the feasibility of continuing to sell petrol at the current price due to naira’s fall
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The Nigerian National Petroleum Company Limited (NNPCL) reportedly paid $325.09 million to acquire Oando retail stations and a reception jetty in Apapa, among other facilities owned by Oando.
The national oil company announced in October 2022 that it acquired OVH Energy Marketing, operators of the Oando downstream assets.
Source: Getty Images
NNPC takes over Oando's strategic assets
The company did not disclose the price at which it bought the assets and which company sold them.
However, the NNPCL said the acquisition consists of over 380 additional filing stations, a reception jetty with a monthly capacity of 240,000 metric tonnes, eight liquified petroleum gas plants, three lube blending plants, three aviation depots, and 12 warehouses.
According to reports, on September 22, 2022, Helios Investment Partners announced the exit of OVH Energy from Nigeria following the completion of the sale of its 100% share in OVH Energy Marketing Limited and ASPM Limited to Nueoil Energy Limited.
BusinessDay reports that Helios Investment Partners and the Vitol Group had bought a majority stake in Oando Marketing Limited, later renamed OVH Energy Limited, after completing the partial divestment announced by Oando in July 2016.
NNPCL said in a financial statement that it acquired 100% of the voting share of Nueoil Energy Limited.
Per NNPCL, Nueoil was registered in March 2022, with no additional information on Riverbrand Energy, which called itself a key participant in international oil markets with a presence in the West African region.
NNPCL said:
“NNPCL acquired Nueoil Energy Limited because it presents an opportunity for NNPCL to capture a third of the retail market share and also presents the opportunity for NNPCL to acquire two blending plants, which would enable the company to participate in the lubricant market on a larger scale,” it added.
FG speaks on PH refinery as marketers worry over current petrol price
Meanwhile, the Nigerian government revealed on Wednesday, January 31, 2024, that the Port Harcourt Refining Company was still undergoing a test run, adding that refined products from the facility will be on the market soon.
The government disclosed this in Abuja as oil marketers expressed concern that the recent fall of the naira against the dollar might lead to a hike in the price of petrol and other refined products.
The marketers wondered how the NNPCL would continue to supply petrol at the current cost, considering the naira’s depreciation.
NNPC signs oil-swap deals worth $755 million with Oando Plc, others
Legit.ng reported that In one month, the Nigerian National Petroleum Corporation (NNPC) Ltd. awarded new oil swap contracts for $755 million.
The contracts, also known as the direct sale and purchase agreements, or DSDP, are in high demand since they meet nearly all of Nigeria's gasoline needs and somewhat offset its diesel and jet fuel use.
Since 2016, NNPC has been importing gasoline from groups of international and local trading companies and paying them back with crude oil through DSDP contracts because it lacks the funds to cover the purchases, according to data and trading sources.
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Source: Legit.ng
