Helios Investment Partners and the Vitol Group have reached an agreement to acquire 60% of the economic rights and 51% of the voting rights in the West African downstream business of Oando, an integrated oil and gas company headquartered in Nigeria, for around $276m.

The deal is subject to regulatory approval and customary purchase price adjustments.

Tope Lawani, co-founder and Managing Partner of Helios Investment Partners, said Oando is a market leading downstream energy business with a strong brand and exciting growth potential.

“Given our successful partnership with Vitol to create Vivo Energy, a leading downstream business which distributes and markets Shell-branded fuels and lubricants in 16 countries across Africa, we are confident that our expertise and regional presence will support the management team in capitalising on its strong market position and the compelling growth opportunities in Nigeria.”

Oando is the largest integrated energy solutions group in Sub-Saharan Africa.

It has a primary and secondary listing on the Nigerian Stock Exchange and the Johannesburg Stock Exchange, and an upstream listing on the Toronto Stock Exchange.

The company has a market capitalization of over $1bn and 2013 revenues of $2.9bn.

The new downstream and retail business of Oando will be established as a standalone, independent company, led by a local management team.

Its assets will comprise over 400 service stations in Nigeria with supporting infrastructure, including 84,000 tonnes of storage and a newly built inbound logistics jetty; as well as complementary businesses, chiefly LPG filling and distribution, lubricants and an interest in a supply and bulk distribution company in Ghana.

The new business will be the second largest downstream fuels company in Nigeria, with a 12% market share.

The Consortium is committed to investing for growth, and working with the experienced and highly skilled local management team to enable the business to capitalize on the 3-5% per annum growth in Nigerian demand for oil products.

It is anticipated that the service stations will retain the Oando brand.

Ian Taylor, President and CEO of Vitol, said: “Vitol has a long history of working in Nigeria and is proud to have served our customers here over many years. This investment is a further reflection of our confidence in the Nigerian economy, and will be independent of the services we provide to our long standing Nigerian customers.”

“We are looking forward to building this new downstream business, alongside our many other business activities in Nigeria,” he said.

Founded in 1966 in Rotterdam, the Vitol Group is the world’s largest independent energy trader.

Globally, Vitol trades over 5 million barrels of crude oil and oil products per day and revenues in 2014 were $270bn.

Helios Investment Partners is an Africa-focused investment firm managing funds totaling over $3bn.