By Ade Jacobs
Tony Elumelu, chairman of the United Bank for Africa (UBA), has attributed his new venture into the oil sector to his success in the banking and power sector.
The businessman and promoter of Heir Holdings recently announced the purchase of 45 percent stake in Oil Mining Lease (OML 17) through the TNOG Oil and Gas Limited.
OML 17 was owned by Shell, Total and ENI before its acquisition by the businessman.
The $1.1 billion new acquisition of Heirs Holdings was financed by a consortium of global and regional banks, the largest oil and gas syndication in Africa in over a decade.
Speaking after the acquisition, Elumelu said, “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.
“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.”
The field presently has a production capacity of 27,000 barrels per day. Also, there are estimated 2P reserves (proven and probable) of 1.2 billion barrels and an additional one billion barrels in possible reserves.
SPDC in a statement said all necessary processes have been concluded before the acquisition took place. The completion was after all the necessary approvals have been received from authorities. The company said $453 million was paid at completion with the balance to be paid over an agreed period.
The company, however, stated that it will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area.