Heirs Holdings acquires 45% stake in onshore oil block OML 17 in Nigeria

Heirs Holdings in partnership with affiliated company Transnational Corporation of Nigeria (Transcorp), has acquired a 45% non-operating stake in OML 17, an onshore oil concession in Nigeria, along with associated assets.

While Heirs Holdings is an Africa-focused investment company, Transnational Corporation is a publicly listed conglomerate in Nigeria, which is engaged in producing power among other activities.

Heirs Holdings and Transcorp have acquired the stake through their related company – TNOG Oil and Gas. The sellers are Shell Petroleum Development Company of Nigeria (30%), Total E&P Nigeria (10%), and Nigerian Agip Oil Company, a subsidiary of Eni, which sold a 5% stake.

Additionally, TNOG Oil and Gas will have sole operatorship of the asset.

The deal has a financing component of $1.1 billion, provided by a group of global and regional banks and investors.

Royal Dutch Shell revealed that its subsidiary sold the stake in OML 17 for $533 million.

Osagie Okunbor – Managing Director of Shell Petroleum Development Company of Nigeria and Country Chairman of Shell Companies in Nigeria 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.”

Currently, OML 17 has a production capacity of 27,000 barrels of oil equivalent per day. As per Heirs Holdings’ estimates, the onshore Nigerian block has 2P reserves of 1.2 billion barrels of oil equivalent along with an additional one billion barrels of oil equivalent resources of further exploration potential.

Tony Elumelu – Chairman of Heirs Holdings 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.”