Heirs, Transcorp acquire 45% stake in oil license OML 17 from Shell, Total and Eni

NIGERIA – TNOG Oil and Gas Limited, a company owned by Heirs Holdings alongside Transnational Corporation of Nigeria Plc, has acquired a 45% participating interest in Nigerian oil license OML 17 and related assets from the Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and ENI.

In addition, TNOG Oil and Gas Limited will have sole operatorship of the asset whose financing component was US$1.1 billion, provided by a consortium of global and regional banks and investors.

OML 17 has a current production capacity of 27,000 barrels of oil equivalent per day and, according to our estimates, 2P reserves of 1.2 billion barrels of oil equivalent, with an additional 1 billion barrels of oil equivalent resources of further exploration potential.

“We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs.”

Tony Elumelu – Chairman, Transcorp

“We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs. The acquisition of such a high-quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria,” Tony Elumelu, the chairman of Heirs Holdings, Transcorp and United Bank for Africa Plc, said in a statement.

“As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities and the strategic importance of the oil and gas sector in Nigeria. 

“We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain.”

In a separate statement, Shell Production and Development Company of Nigeria (SPDC) announced a US$533 million sale of its 30% stake in the OML and said it had received all necessary approvals from Nigerian authorities.

Standard Chartered Plc, United Capital Plc and a syndicate of lending institutions advised on the deal, which involves Schlumberger as a technical partner and Shell’s trading arm as an oil offtaker.

“This deal further demonstrates Transcorp’s integrated energy strategy and our determination to power Africa,” speaking on the investment, the President/GCEO of Transcorp, Owen Omogiafo, said.

The investment demonstrates a further important advance in the execution of Heirs Holdings’ integrated energy strategy and the Group’s commitment to Africa’s development, through long term investments that create economic prosperity and social wealth.

Heirs Holdings’ heritage and approach to business fundamentally underscores its commitment to inclusive development and shared prosperity with its host communities. Heirs Holdings is fully invested in the development of the Niger Delta region.

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