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Elumelu’s Heirs Holdings acquires 45% stake of OML 17 for $1.1b from Shell, Total and ENI

Dr Tony Elumelu,
Dr Tony Elumelu,

Dr Tony Elumelu’s Heirs Holdings, in partnership with Transnational Corporation of Nigeria Plc, on Friday announced the “unconditional acquisition” of a 45 percent participating interest in OML 17 through TNOG Oil and Gas Limited.

The acquisition also includes all assets of Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and ENI in the oil block.

TNOG Oil and Gas Limited will also have sole operatorship of the asset, it was further announced.

Heirs Holdings and Transcorp are both chaired by Tony Elumelu, who is also the chairman of United Bank for Africa Plc.

The field currently has a production capacity of 27,000 barrels of oil equivalent per day.

There are estimated 2P reserves (proven and probable) of 1.2 billion barrels and an additional one billion barrels in possible reserves — all of the oil equivalent.

The transaction is reputed as one of the largest oil and gas financing in Africa in more than a decade.

A financing component of $1.1 billion is provided by a consortium of global and regional banks and investors, the new owners said in a statement shared with TheCable.

Elumelu was quoted to have said after the announcement of the deal that: “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.

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“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.

“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.”


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