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Heirs Holdings Acquires 45 Percent Participating Interest In Nigerian Oil Licence

January 15, 2021

The transaction is one of the largest oil and gas financings in Africa in more than a decade, with a financing component of $1.1 billion,

Leading African investment company, Heirs Holdings, has acquired 45 percent participating interest in Nigerian oil licence OML 17 and other assets from the Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and ENI.

In a statement on Friday, the company said one of its subsidiaries, TNOG Oil and Gas Limited would have sole operatorship of the asset. 



The statement also stated that the transaction is one of the largest oil and gas financings in Africa in more than a decade, with a financing component of $1.1 billion, provided by a consortium of global and regional banks and investors. 

According to the statement, the investment demonstrates a further important advance in the execution of the company's integrated energy strategy and the group’s commitment to Africa’s development through long-term investments that create economic prosperity and social wealth.

It partly read, "OML 17 has a current production capacity of 27,000 barrels of oil equivalent per day and, according to our estimates, 2P reserves of 1.2 billion barrels of oil equivalent, with an additional 1 billion barrels of oil equivalent resources of further exploration potential.
"Heirs Holdings’ heritage and approach to business fundamentally underscores its commitment to inclusive development and shared prosperity with its host communities. Heirs Holdings is fully invested in the development of the Niger Delta region.
"Heirs Holdings’ strategy of creating the leading integrated energy business in Africa is executed through a series of strategic portfolio holdings. Transcorp is one of the largest power producers in Nigeria, with 2,000 MW of installed capacity, through ownership of Transcorp Power Plant and the recent acquisition of Afam Power Plc and Afam Three Fast Power Limited.

"Transcorp closed the $300 million Afam acquisitions in November 2020. Transcorp supplies electricity to the Republic of Benin, as part of an emphasis on promoting regional integration and delivering robust power supply to catalyse development in Africa. 

"Transcorp also operates OPL281, under a production sharing contract with the Nigerian National Petroleum Corporation (NNPC). Similarly, Heirs Holdings’ subsidiary, Tenoil, is the operator of OPL 2008, under a production sharing contract with NNPC. Tenoil also owns the Ata Marginal Field, which will commence production in Q2, 2021, with 3,500 barrels of oil per day."
The Chairman, Heirs Holdings, Tony Elumelu, said the group has a clear vision of creating Africa’s first integrated energy, a global quality business, uniquely focused on Africa and Africa’s energy needs. 
He also stated that the acquisition of such asset, with significant potential for further growth, is a strong statement of Heirs Holdings' confidence in Nigeria, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team. 

Elumelu said, "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.”
On his part, the President/GCEO of Transcorp, Owen Omogiafo, said the deal demonstrates Transcorp’s integrated energy strategy and its determination to power Africa.