Tony Elumelu, Trancorp buy OML 17 for USD533 million

Admin l Friday, January 15, 2021

 

LAGOS, Nigeria – 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, owned by Chief Tony Elumelu 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.

Osagie Okunbor, Managing Director of SPDC 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.”

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.