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- Oando has agreed to sell a 60 percent stake in its downstream business to Vitol and Helios Investment Partners for $276 million, the energy company said on Tuesday.
- Oando, which is shifting away from being a marketer of refined petroleum products into an oil and gas explorer, completed the acquisition of ConocoPhillips’s upstream oil and gas business in Nigeria last year.
- Its downstream business, with a market share of 12 percent in Nigeria, will be set up as an independent entity, but will retain the Oando brand, the company said in a statement. The consortium will acquire 51 percent of the voting rights.
- Oando’s downstream assets include more than 400 petrol stations in Nigeria and an interest in a bulk distribution company in Ghana, it said. Oando also has listings in Toronto and Johannesburg.
- Soros-backed Helios has already partnered with Vitol to distribute Shell-branded fuels and lubricants in 16 African countries and is confident the new deal will capitalise on the 3-5 percent annual growth in Nigerian demand for oil products.
- Nigeria exports nearly 2 million barrels per day of oil but imports the bulk of its refined products because its refining capacity is unable to meet its daily fuel consumption of 40 million litres.
- Vitol has bought downstream assets such as storage and refineries in Europe, most recently in conjunction with Carlyle Group in the Varo Energy venture.
- Source: Reuters
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