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.
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.
“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.”