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Shell, Total, Agip sell stake in OML 17 to Tony Elumelu’s TNOG for $533m

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Shell sells stake to Tony Elumelu

 

BY KAZIE UKO


Oil giants Shell, Total and Agip have sold their interests in the Oil Mining Lease (OML) 17 in the Eastern Niger Delta, to TNOG Oil and Gas Limited, owned by Mr Tony Elumelu, Chairman of Heirs Holdings Limited, owners of United Bank of Africa (UBA) Plc.

The deal worth $533 million is said to have received the blessing of the Federal Government of Nigeria, with relevant federal authorities giving their approvals.

A total of $453 million, according to a statement on Friday by Bamidele Odugbesan, the Media Relations Manager, Shell Petroleum Development Company of Nigeria Limited (SPDC), operator of a joint venture between the Nigerian National Petroleum Corporation, SPDC, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited, was paid at completion of the deal with the balance of $80 million to be paid over an agreed period.

Osagie Okunbor, Managing Director of SPDC and Country Chairman of Shell Companies in Nigeria, said of the deal: “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.”

Elumelu, on his part, stated: “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.”

READ: Elumelu says investment in power, youth’ll drive economic growth in Africa

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.”

Odugbesan said in the statement: “The Shell Petroleum Development Company of Nigeria Limited (SPDC), has completed the sale of its 30% interest in Oil Mining Lease (OML) 17 in the Eastern Niger Delta, and associated infrastructure, to TNOG Oil and Gas Limited, a related company of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc (Transcorp), for a consideration of $533m. A total of $453m 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.

“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.”

According to the SPDC spokesman, “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.”

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