Can you provide an overview of OVH Energy and the role the company plays in the oil and gas industry in Nigeria?

OVH Energy is a prominent player in the Nigerian oil and gas industry. We operate through our subsidiaries in Nigeria, Ghana, and Togo, sourcing, distributing, and retailing various petroleum products. Our product range includes Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), House Hold Kerosene (HHK), Aviation Turbine Kerosene (ATK), Low Pour Fuel Oil (LPFO), lubricating oils and greases, and LPG. With over 350 retail outlets, we have built a vast network to serve our customers.

Additionally, our infrastructure subsidiary, Apapa SPM Limited (ASPM), manages the Lagos Midstream Jetty (LMJ), which is West Africa’s first privately owned midstream jetty. The LMJ facilitates the transfer and delivery of petroleum products from vessels through a single point mooring system to a storage network of over 200,000 metric tons in Lagos. This infrastructure enhances product delivery and offloading efficiency, solidifying our position as a trusted downstream company in Nigeria.

How does OVH Energy Marketing utilize technology to address the challenges faced in the industry?

OVH Energy Marketing recognizes the importance of leveraging technology to overcome industry challenges. We strive to implement technology faster and at a lower cost than our competitors. For instance, we have installed automatic gauges in all our tanks at retail fuel sites. This enables us to remotely monitor fuel levels and identify sites at risk of running dry. From a logistics perspective, technology helps us ensure just-in-time delivery by tracking pump quantities and maintaining quality control. We also focus on providing multiple payment solutions for our customers, leveraging technology to meet their diverse needs.

Can you comment on the ease of doing business in Angola and Nigeria?

Angola and Nigeria differ in terms of their ease of doing business. Angola is a vast country with a relatively smaller population compared to Nigeria. The government in Angola has fewer administrative complexities to manage, and most of its upstream assets are offshore, resulting in less impact on local communities. Thus, Angola may offer a slightly easier business environment.

On the other hand, Nigeria is a vast country with a population exceeding 190 million, spread across diverse regions with onshore and offshore assets. The country’s infrastructure requires maintenance, and dealing with both state and federal governments adds complexity for investors and operators. Nigeria’s enormous demand for petroleum products makes it logical to establish a large refinery.

However, operating in Nigeria involves navigating both state and federal laws and regulations, unlike Angola, where there is a single government.

While Nigeria possesses significant gas reserves, there is a need to diversify the economy beyond oil and gas. Economic strength lies in diversification, and Nigeria has the potential to become a technology hub in Africa. Utilizing the current favorable oil and gas prices, Nigeria should invest in diversifying its economy.

Regarding the mismanagement of state-owned refineries in Nigeria, do you believe privatization is the solution?

In the past, state-owned refineries in Nigeria operated efficiently. However, a lack of investment, maintenance, and skilled workforce retention led to their decline. Nevertheless, the efficiency of running an asset, whether a depot, refinery, or pipeline, does not depend on ownership alone. Privatization is favored by many due to the loss of confidence in the government, but it does not guarantee optimal utilization of assets. Instead, companies should explore public-private partnerships. Nigerian refineries are valuable national assets, and they need to generate revenue for the country, even if certain aspects are outsourced to private partners. Collaboration between the public and private sectors can contribute to their successful operation.