Nigerian business magnate, Mr. Tony Elumelu has bought significant shares in three international oil companies that operate in Nigeria in what is considered one of the largest oil and gas financing in Africa in more than a decade with a financial component amounting to $1.1bn.
The deal saw the sale of a combined 45 percent interest in Oil Mining Lease 17 and related assets of the three companies, Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited to TNOG Oil and Gas Limited (a related company of Heirs Holdings and Transcorp) in which the investor and philanthropist owns a controlling interest.
In terms of assigned percentages, the renowned business man through TNOG Oil bagged 30% interest in Shell Petroleum Development Company of Nigeria, 10% in Total E&P Nigeria Limited and 5% interest in Nigerian Agip Oil Company Limited.
In confirming the deal, the Managing Director of SPDC and Country Chairman of Shell companies in Nigeria, Mr Osagie Okunbor said in a statement that, “a total of $453m was paid at completion with the balance to be paid over an agreed period. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area,”
He added that, “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.”
A statement from the company of the business man, Mr. Tony Elumelu on Friday further explained that, the newly acquired OML 17 facility “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.”
The company added that “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.” “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 company said.