OVH’s yearly distribution capacity hits two billion litres
OVH Energy Marketing Limited (OVH) has increased capacity to distribute two billion litres of petroleum products yearly.
The Chief Executive Officer of the company, which was formerly Oando Marketing Limited, Yomi Awobokun, made this known at a media briefing in Lagos recently.
According to Awobokun the company will continue to offer its customers sustainable high quality products and services including supply reliability, technical expertise and unmatched customer service nationwide and across the west African sub-region.
“We reiterate our commitment to safe and environmentally responsible business practices. With this corporate recapitalisation and restructure, the company will continue in its’ drive to lead other players in the downstream sector in Nigeria and across the sub-region” he added.
Awobokun identified access to foreign exchange and the low crude oil price as some of the major challenges facing the downstream subsector of the petroleum industry,
He explained that OVH represents the new shareholders of the firm comprising Oando, Vitol and Helios.
“Although the corporate name has changed, the products of the firm are licensed to be marketed as Oando in order to sustain the Oando heritage and entrepreneurship.
“All the shareholders agreed that a name change will boost the capacity of the company but to sustain the Oando heritage and entrepreneur OVH is licensed to market its products as Oando. Our intention is grow our reach stabilise prices and supplies and add value to our shareholders.
“The major value of this partnership is that it enabled access to capital by Oando. The downstream has been going through significant challenges including the unavailability of forex, drop in crude price and as a result of the entire externalities the economy is going through. The future leaders of this industry are those that are able to access capital. So the best of the deal is that it puts Oando to access capital and ensure supply. The partnership puts us in good stead to dominate the market,” he said.
He added that the name change was a reflection of a recent corporate recapitalisation and restructuring to admit new shareholders
He noted that the company has a distribution capacity of over two billion litres of fuels representing 13 per cent of national annual consumption.
“Notwithstanding the name change, OVH Energy Marketing will continue to use the existing Oando brand name in conducting its retail activities by virtue of a brand license granted by Oando Plc.