DGAP-News: Heirs Holdings / Key word(s): Miscellaneous
Heirs Holdings Significantly Expands Oil and Gas Portfolio
2021-01-18 / 06:06
The issuer is solely responsible for the content of this announcement.
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Heirs Holdings Significantly Expands Oil and Gas Portfolio
- Acquires 45% of OML 17 from Shell, Total and ENI
- Existing Production Capacity of 27,000 barrels of oil equivalent per day Estimated 2P Reserves of 1.2 billion barrels
of oil equivalent
- Estimated Additional 1 billion barrels of oil equivalent of further exploration potential
Lagos, Nigeria, January 15, 2021 - Heirs Holdings ("HH"), the leading African strategic investor, in partnership with
affiliated company Transnational Corporation of Nigeria Plc ("Transcorp"), Nigeria's largest publicly listed
conglomerate, announced today the unconditional acquisition of a 45% participating interest in Nigerian oil licence OML
17 and related assets, through TNOG Oil and Gas Limited (a related company of Heirs Holdings and Transcorp), from the
Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and ENI. In addition, TNOG Oil and
Gas Limited will have sole operatorship of the asset.
The transaction is one of the largest oil and gas financings in Africa in more than a decade, with a financing
component of USUSD1.1 billion, provided by a consortium of global and regional banks and investors. OML 17 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 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 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 USUSD300 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.
Chairman of Heirs Holdings, Tony Elumelu stated: "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."
Speaking further, he said "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."
Speaking on the investment, the President/GCEO of Transcorp, Owen Omogiafo, said "This deal further demonstrates
Transcorp's integrated energy strategy and our determination to power Africa."
Heirs Holdings was advised by Standard Chartered Plc, as Global Coordinator, and United Capital Plc, with a syndicate
of lending institutions including Afreximbank, ABSA, Africa Finance Corporation, Union Bank of Nigeria, Hybrid Capital,
and global asset management firm Amundi. The deal also involves Schlumberger as a technical partner, as well as the
trading arm of Shell as an offtaker.
Heirs Holdings has created one of Africa's largest, indigenous owned, oil and gas businesses, headquartered in Lagos,
Nigeria and led by a board and management team with significant regional and global experience in production,
exploration, and value creation in the resources sector. The HH Group is committed to the highest standards of safety,
health, and community relations, together with best practice in governance and accountability.
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2021-01-18 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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