By Tanko Mohammed
Shell Petroleum Development Company of Nigeria, Total E&P Nigeria Limited and ENI have released 45 percent state in OML 17 and related assets to Heirs Holdings, in partnership with affiliated company, Transnational Corporation of Nigeria Plc (Transcorp).
The purchase was done through TNOG Oil and Gas Limited, related company of Heirs Holdings and Transcorp.
To this effect, TNOG Oil and Gas Limited will have sole operatorship of the asset.
The transaction is one of the largest oil and gas financing 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 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.
A statement from Heirs Holdings stated that 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.
The firm is fully invested in the development of the Niger Delta region.
Reacting to the development, chairman of Heirs Holdings, Tony Elumelu said, “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, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team that we have assembled.”
As a Nigerian, and more particularly an indigene of the Niger Delta region, he said he understood the responsibilities that come with stewardship of the asset, its engagement with communities and the strategic importance of the oil and gas sector in the country.
“We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain,” he pointed out.
While thanking Shell, Total and ENI for the professionalism of the process, he applauded the federal government, the ministry of Petroleum Resources, and the NNPC for the confidence they placed in the company.
Speaking on the investment, the president/GCEO of Transcorp, Owen Omogiafo, said, “This deal further demonstrates Transcorp’s integrated energy strategy and our determination to power Africa.”
Heirs Holdings was advised by Standard Chartered Plc, as Global Coordinator, and United Capital Plc, with a syndicate of lending institutions, including Afreximbank, ABSA, Africa Finance Corporation, Union Bank of Nigeria, Hybrid Capital, and global asset management firm, Amundi.
The deal also involves Schlumberger as a technical partner, as well as the trading arm of Shell as an offtaker.
Heirs Holdings has created one of Africa’s largest, indigenous owned oil and gas businesses, headquartered in Lagos and led by a board and management team with significant regional and global experience in production, exploration and value creation in the resources sector.
