BREAKING NEWS:
Nigerian firms acquire oil block from Shell, Total, ENI for $1.1 billion
. Firms plan to emerge Africa’s first energy multinational, says Elumelu
.Existing production capacity of 27,000 barrels per day, 1.2 billion barrels reserve
.Shell confirms sales of 30 share
By Abimbola Abdullahi
Heirs Holdings (“HH”), in partnership with affiliated company Transnational Corporation of Nigeria Plc (“Transcorp”), have unconditional acquisition of a 45% participating interest in Nigerian oil licence OML 17 and related assets through TNOG Oil and Gas Limited from the Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and ENI.
The company, in a statement said TNOG Oil and Gas Limited will have sole operatorship of the asset.
The transaction, according to Heirs Holding, 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 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: “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.”
Speaking further, he said “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.”
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.
Meanwhile, the Shell Petroleum Development Company of Nigeria Limited (SPDC), has confirmed the sale of its 30 per cent interest in Oil Mining Lease (OML) 17 in the Eastern Niger Delta, and associated infrastructure, to companies, for a consideration of $533 million.
Confirming the sales in a statement, Shell said a total of $453 million was paid at completion with the balance to be paid over an agreed period.
Completion follows the receipt of all approvals from the relevant authorities of the Federal Government of Nigeria.
It stated: “SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area.
” SPDC is committed to transfer OML 17 in an orderly and responsible manner to the new owner, which will help to provide a sustainable long-term plan to unlock its full potential.
” The sale also enables SPDC to focus on supporting the Federal Government of Nigeria’s national energy agenda in its remaining OMLs through oil and gas production, payment of royalties, taxes and levies as well as advancing local content and providing social investments,” it stated.
Managing Director of SPDC and Country Chairman of Shell Companies in Nigeria,Osagie Okunbor, said: “As with previous divestments, we will facilitate a successful transition to new ownership. Shell has been in Nigeria for over 60 years and remains committed to a long-term presence here.”
The other SPDC JV partners, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited, have also assigned their interests of 10% and 5% respectively in the lease, ultimately giving TNOG Oil and Gas Limited a 45% interest in OML 17.
