‘Deregulation Needed to Sustain Petroleum Industry’


OVH Energy Marketing Limited and the Major Oil Marketers Association of Nigeria (MOMAN) have reiterated the need for the deregulation of the nation’s petroleum industry, saying it remains the best way to sustain the industry for the future.

The Managing Director/Chief Executive Officer of OVH Energy, Mr. Huub Stokman and the Executive Secretary of MOMAN, Mr. Clement Isong, jointly made the call at a media parley with energy correspondents in Lagos, recently.

Stokman said the challenges facing the nation’s downstream sector would be nipped in the bud if the federal government completely adopts deregulation.

He, however, revealed that the company has made impressive showing in the country’s downstream sub-sector, adding that despite the challenges in the sub-sector, OVH Energy has been able to acquire two new aviation bowsers to deepen its market penetration in the aviation sector.

He said in the course of the year, the company has invested significantly in upgrading its existing retail stations to better serve and create the right experience for its customers.

Stokman said: ‘’We have included stand-alone Oleum Service Centre with two bays complete with lifting equipment in some of our stations in addition to our traditional single pit lube bay within the station building. Our Lube bay offerings include car servicing, oil change, car diagnosis, tyre change and air alignment and wheel balancing, and a 36-point car check.

“We know the sort of care an average car owner places on his vehicle, so we added car wash service that includes interior detailing and shampooing. We just concluded the Oleum Awoof promo where we gave out a brand new Toyota Yaris and over 4,000 gift items including tricycles, motorbikes, TVs,generators and tool boxes.

“We are expanding our LPG footprint. At the moment, we have installed over 38 skid tanks, our Pay-As-You-Gas (PAUG) plants, to provide a much easier access to gas refills for our customers. We have also added 6KG 3in-1 cooking bundle to our O-Gas offerings (3KG,6KG,12.5KG and 50KG and Pay-As-U-Gas-our spot buying option.”

He further said his company recorded a significant milestone recently when it upgraded its ASPM jetty to receive both fuel and diesel, adding that OVH celebrated 100 vessel berths without any Lost Time Injury earlier in the year.

On the company’s corporate social responsibility, Stokman disclosed that 4, 800 mechanics have graduated from Oleum Academy, and that OVH is currently training additional 300 mechanics.

“This is especially satisfying to us because we have achieved our target. In 2014 when we inaugurated this Academy, we said we would have trained 5000 mechanics in five years.We have simply achieved that feat,” he said.

He also disclosed that OVH Energy has partnered with Global Shapers to distribute 100 units of O-gas to pregnant woman with the aim of reducing the risk of birth defects.

According to him, the company also partnered with Oando Foundation to upgrade One school infrastructure and provide learning materials.
“All of these and more are what OVH Energy is doing to ensure that we deliver on our promise to our customers’ work using trusted petroleum products,” he added.

On his part, Isong, expressed concerns over challenges facing the downstream sector, adding that marketers have not received all pending outstanding debts payments owed by government on subsidy.

He said the huge debts have affected marketers from getting loans from banks, adding that issue of margins remains imperative.

According him, ”we still need margins for sustainability of our business. It does not make sense to import because it’s not profitable. Total deregulation of the sector remains the best option for the downstream sub sector of the oil and gas industry.”

He, however, reiterated the association’s commitment towards ensuring safety compliance within the petroleum tanker drivers.
He said that MOMAN was collaborating with the Federal Road Safety Corps (FRSC) on safety code system for checking of trucks from loading point to distribution.