Elumelu’s TNOG acquires 45% of OML 17 from Shell, Total, ENI

OBINNA EZUGWU

Heirs Holdings, in partnership with Transnational Corporation of Nigeria Plc, on Friday announced the “unconditional acquisition” of a 45 percent participating interest in OML 17 through TNOG Oil and Gas Limited.

The acquisition also includes all assets of Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and ENI in the oil block.

TNOG Oil and Gas Limited will also have sole operatorship of the asset, it was further announced.

Heirs Holdings and Transcorp are both chaired by Tony Elumelu, who is also the chairman of United Bank for Africa Plc.

Confirming the development in a statement on Friday, Heirs Holdings said it significantly expanded its oil and gas portfolio by acquiring 45% of OML 17 from Shell, Total and ENI with existing Production Capacity of 27,000 barrels of oil equivalent per day Estimated 2P Reserves of 1.2 billion barrels of oil equivalent

The OML, the statement added, has estimated additional 1 billion barrels of oil equivalent of further exploration potential

“Heirs Holdings (“HH”), the leading African strategic investor, in partnership with affiliated company Transnational Corporation of Nigeria Plc (“Transcorp”), Nigeria’s largest publicly listed conglomerate, announced today the unconditional acquisition of a 45% participating interest in Nigerian oil licence OML 17 and related assets, through TNOG Oil and Gas Limited (a related company of Heirs Holdings and Transcorp), 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,” the statement read.

“The transaction is one of the largest oil and gas financings in Africa in more than a decade, with a financing component of 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.

“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.”