***As Elumelu’s Heirs Holdings’ subsidiary, Tenoil, comes on stream in Q2’21
By Udeme Akpan
Nigeria’s oil production capacity is set to increase by additional 3,500 barrels per day, bpd, following the expected coming on stream of Ata Field in the Second Quarter (April-June) of 2021.
Ata field, located at Oil Production Licenses, OPL 2008, belongs to Heirs Holdings’ subsidiary, Tenoil, the operator of OPL 2008, which has a production sharing contract with Nigerian National Petroleum Corporation, NNPC.
In a message obtained from its website, TNOG Oil and Gas Limited, a related company of Heirs Holdings and Transcorp, stated: “Heirs Holdings’ subsidiary, Tenoil is the operator of OPL 2008, under a production sharing contract with NNPC. Tenoil is also taking the marginal Ata Field into production, with a capacity of 3,500boe/d expected in Q2 2021.”
Already, the Tony Elumelu-led Heirs Holdings has acquired a 45 per cent participating interest in Oil Mining Licence, OML 17, and related assets, through TNOG Oil and Gas Limited, from the Shell Petroleum Development Company, SPDC, of Nigeria Limited, Total E&P Nigeria Limited, and Nigerian Agip Oil Company Limited.
In a statement obtained by Vanguard, Heirs Holdings, which described the transaction as one of the largest oil and gas financings in Africa in more than a decade, with a financing component of $1.1 billion, provided by a consortium of global and regional banks and investors, had said 30 per cent, 10 per cent and five per cent, came from SPDC, Total and Agip, respectively.
It had stated: “OML 17 has a current production capacity of 27,000 barrels of oil equivalent per day and, according to our estimates, reserves of 1.2 billion barrels of oil equivalent, with an additional 1 billion barrels of oil equivalent resources of further exploration potential.
“The investment demonstrates a further important advance in the execution of Heirs Holdings’ integrated energy strategy and the group’s commitment to Africa’s development, through long term investments that create economic prosperity and social wealth.
Heirs Holdings’ heritage and approach to business fundamentally underscores its commitment to inclusive development and shared prosperity with its host communities.
Heirs Holdings is fully invested in the development of the Niger Delta region.
“Heirs Holdings’ strategy of creating the leading integrated energy business in Africa is executed through a series of strategic portfolio holdings. Transcorp is one of the largest power producers in Nigeria, with 2,000 megawatts, mw, of installed capacity, through ownership of Transcorp Power Plant and the recent acquisition of Afam Power Plc. and Afam Three Fast Power Limited. Transcorp closed the US$300 million Afam acquisitions in November 2020.
Transcorp supplies electricity to the Republic of Benin, as part of an emphasis on promoting regional integration and delivering robust power supply to catalyse development in Africa. Transcorp also operates OPL281, under a production sharing contract with the Nigerian National Petroleum Corporation, NNPC. Similarly, Heirs Holdings’ subsidiary, Tenoil, is the operator of OPL 2008, under a production sharing contract with NNPC. Tenoil also owns the Ata Marginal Field, which will commence production in Q2, 2021, with 3,500 barrels of oil per day.”
Commenting on the development, Chairman of Heirs Holdings, Tony Elumelu, had this to say: “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.”