Heirs Holdings, in partnership with affiliated company Transnational Corporation of Nigeria Plc (Transcorp), has acquired a 45 per cent participating interest in OML 17 and related assets, from the Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and ENI for $1.1 billion.
Heirs Holdings and Transcorp acquired the oil block through a subsidiary, TNOG Oil and Gas Limited, which will have sole operatorship of the asset.
OML 17 has a current production capacity of 27,000 barrels of oil equivalent per day and 2P reserves of 1.2 billion barrels of oil equivalent, with an additional one billion barrels of oil equivalent resources of further exploration potential.
According to a statement by Heirs Holdings, “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.”
Commenting on the acquisition, Chairman of Heirs Holdings, Tony Elumelu stated: “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, 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.”
He added, “I would like to thank Shell, Total and ENI, for the professionalism of the process, the Federal Government of Nigeria, the Ministry of Petroleum Resources, and the NNPC for the confidence they have placed in us.”
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.”
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