Home Energy Nigeria needs deregulation to sustain petroleum Industry- OVH boss

Nigeria needs deregulation to sustain petroleum Industry- OVH boss

Nigeria needs deregulation to sustain petroleum Industry- OVH boss


Chief Executive Officer, OVH Energy, Mr. Huub Stokman, has advocated the need for the federal government to deregulate the nation’s petroleum industry.

Stokman gave the advice at a media parley in Lagos, where he also explained that the ills besetting the nation’s downstream sector would be nipped in the bud if the federal government completely adopts deregulation policy.

He said his company has made an impressive show in the country’s downstream despite the challenges therein following the acquisition of two new aviation bowsers to deepen its market penetration in the aviation sector.

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

‘’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 4000 gift items including tricycles, motorbikes, TVs, generators and toolboxes.

‘’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 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, just as he revealed 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 4800 mechanics have graduated from Oleum Academy, adding that OVH is currently training an additional 300 mechanics.

”This is especially satisfying for 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 his company partnered with global shapers to distribute 100 units of O-gas to pregnant women with the aim of reducing the risk of birth defects. 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.

Similarly, Mr. Clement Isong, the CEO/Executive Secretary, Major Oil Marketers Association of Nigeria (MOMAN) expressed concerned over challenges facing the downstream sector, adding that marketers have not received all pending outstanding debts payments owed by the government on subsidy.

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

According him, We still need margins for the sustainability of our business. It does not make sense to import because it’s not profitable.

” The 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 is collaborating with the Federal Road Safety Corps (FRSC) on safety code system for checking trucks from loading point to distribution.

Isong said that too many trucks plying the roads are too old and should not be allowed to move on the roads.

“We have resulted in ensuring that all members trucks are automated, certified and compliance with the code of standard before lifting the depots.

“The safety committees of MOMAN members have out mechanism in place that ensures trucks belonging to members don’t involve in malpractices, accidents and illegality.

“We organize training for all truck drivers yearly. We are also working with tanker drivers and other unions to bring sanity to the haulage business,” he said.

Isong said that MOMAN is saddled with the responsibility of ensuring standard in the downstream sector among its member companies.

He said that MOMAN will ensure effective compliance of health, safety, environment & quality (HSEQ), corporate governance, customer satisfaction at the station forecourts including accurate dispensing of product.

Isong, stated that good corporate governance practices were at the core of good business performance impacting all stakeholders including shareholders, employees, service providers, transporters, dealers and ultimately, the Nigerian customer.

Isong, said that the image of the downstream sector of the oil and gas industry had, over the years, suffered considerable damage as a result of some underhand practices, particularly the penchant of some petrol station dealers for cheating at the pumps.

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