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UPDATED: Elumelu-led TNOG acquires 30% interest in SPDC’s OML 17 at $533m

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ElumeluBy Udeme Akpan, Energy Editor

THE Tony Elumelu-led TNOG has acquired a 30 per cent interest in The Shell Petroleum Development Company of Nigeria Limited (SPDC), Oil Mining Lease (OML), 17 at the cost of $533 million, in the Eastern Niger Delta.

In a statement obtained by Vanguard, SPDC, which confirmed that TNOG, has already paid $453 million, stated: “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.”

Providing more information, the company, stated: “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.”

Commenting on the development, 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.”

READ ALSO: Shell vs Wike: Finding a workable solution for OML 11 and Kidney Island

The company added: “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.”

Nevertheless, in a document obtained from its website, TNOG stated: “We are one of Africa’s largest, indigenous owned, oil and gas businesses, headquartered and managed in Nigeria and led by a management team with significant regional and global experience in production, exploration, and value creation in the resources sector.

“We have a single, clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s resource needs.”

It also added: “Affiliated with Heirs Holdings and Transcorp, Nigeria’s largest listed conglomerate, with a public shareholder base of over 3000,000, our focus is on catalyzing African based integrated value creation, with a commitment to Africa’s development, through long term investments that create economic prosperity and social wealth.

“We are uniquely positioned to work with our partners to transform lives in Nigeria, through power generation, industrial synergies, and our commitment to entrepreneurial empowerment.”

Vanguard News Nigeria

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