Heirs Holdings expands oil, gas portfolio

Heirs Holdings (HH), in partnership with Transnational Corporation of Nigeria Plc (Transcorp),  yesterday  announced the acquisition of a 45% participating interest in Nigerian oil licence OML 17 and related assets from the Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and ENI.

The deal was struck through TNOG Oil and Gas Limited, a related company of Heirs Holdings and Transcorp, which will have sole operatorship of the asset.

With a financing component of US$1.1 billion, industry sources say the transaction is one of the largest oil and gas financings in Africa in more than a decade.

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

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Chairman of Heirs Holdings, Tony Elumelu, said of the deal: “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.

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

Also 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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