Vitol, Helios buy into Oando downstream
LAGOS, July 1, 2015 – Vitol Group and Helios Investment Partners will acquire a majority stake in Oando’s downstream unit for $276 million.
Dutch-owned commodity traders Vitol and Africa-focused equity firm Helios will purchase a 60-percent interest in the Nigerian service station, fuel storage and supply business.
The deal, announced Tuesday, covers LPG operations, 400 service stations and 84,000 tonnes of storage.
Oando, a Lagos-headquartered energy multinational, confirmed the sale, which will make gains on easing subsidiary Oando Energy Resources’ $545-million debt.
The purchase came the same day as Nigeria’s recently elected president announced plans to streamline the country’s oil and gas industry to drive up revenues.
Muhammadu Buhari told delegations from ExxonMobil and Nigeria LNG that his government would undertake necessary reforms to tackle graft and waste.