Intrigues, as Kyari, others dodge Reps probe into NNPCL acquisition of OVH Energy Marketing from Oando

Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mr Mele Kyari, and others from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (MMDPRA), the OVH Energy Marketing, failed to turn up as the House of Representatives committee probing undue practices in the acquisition by the Nigerian oil corporation of the former Oando retail subsidiary in the country.

The House of Representatives Ad hoc Committee to Investigate the Circumstances surrounding the acquisition of OVH Energy Marketing by the NNPCL commenced sittings without the presence of the chief executives who shunned the probe.

Allegations of corruption have continued to trail the October 2022 acquisition of the OVH Energy Marketing by NNPCL, a move which saw the national oil corporation gain over 350 service stations in Nigeria with supporting infrastructure, including 84,000 tons of storage and a newly built inbound logistics jetty; as well as complementary businesses, chiefly LPG filling and distribution, lubricants and an interest in a supply and bulk distribution company in Ghana.

All of which were formerly assets of Oando which facing bankruptcy was forced to liquidate its assets to settle lenders.

Oando Plc had in July 2016, concluded a recapitalization and partial divestment of its downstream operations to a consortium of Helios and Vitol. The new company, renamed OVH Energy, is the second largest downstream fuels company in Nigeria.

In October, 2022, NNPCL in a surprise move announced the acquisition of OVH Energy Marketing from Oando to merge the new company to its existing NNPC Retail Limited (NRL).

In addition, and to support the combined NNPC Retail Limited operations, NNPC Limited further 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.

Through this acquisition, NNPC Retail Limited positioned to 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.

 “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,” Kyari had said.

OVH Energy Oando branded retail service stations were subsequently rebranded into the NNPC brand and a full integration is expected by the end of 2023.

However, the acquisition has been mired in corruption allegations and accusation of failure to follow due process, leading to the constitution of a probe committee by the House of Representatives.

The probe began, Monday with the failure of Kyari and MMDPRA chief executive officer, Farouk Ahmed, to show up, raising eyebrows over the extent of involvement of the two figures in the acquisition.

As the hearing commenced, the chairman of the Ad hoc Committee, Honourable Abubakar Nalaraba, frowned that both CEOs sent representatives.

The NNPC sent its Executive Vice President (Downstream), Yemi Adetunji while the NMDPRA was represented by Soji Soloye.

They said their various Chief Executives could not attend the hearing because they were ‘attending to other things.’

When the Chairman of the Ad hoc Committee inquired if they could represent their principals at the probe, they said they could not.

Nalaraba said it was unfortunate because the committee was far behind schedule in the discharge of its assignment.

“This is an ad hoc committee on the need to investigate the irregularities and alleged corruption in the Nigeria energy security provider, the NNPC Limited, and the acquisition of OVH Energy Marketing.

“The House resolved to set up this Ad hoc committee to investigate the circumstances surrounding the acquisition of OVH Energy by NNPCL and report within four weeks.

“The time allocated to conclude and submit this report within four weeks. Unfortunately, we are far behind schedule despite the extension of the House recess, we still feel the need to continue or to progress with this investigation,” he said.

The hearing dissolved into an executive session for the panel to decide an appropriate time for the Chief Executives to appear.