Tony Elumelu’s company, TNOG, buys 30% stakes in Shell’s OML 17

Chinazor Megbolu |

The Shell Petroleum Development Company of Nigeria Limited (SPDC), has announced the completion of the 30 per cent sale interest in Oil Mining Lease (OML) 17 in the Eastern Niger Delta, and associated infrastructure, to TNOG Oil and Gas Limited.

The TNOG Oil and Gas Limited, owned by the business mogul, Tony Elumelu,is also related firm of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc (Transcorp), which bought the shares at a whooping sum of $533 million.

SPDC further noted that a total of $453 million was paid at completion while the balance will be paid over an agreed period.

The SPDC, is the operator of a joint venture between the Nigerian National Petroleum Corporation (NNPC) with 55 per cent stake, SPDC with 30 per cent, Total E&P Nigeria Limited with 10 per cent and Nigerian Agip Oil Company Limited with 5 per cent, SPDC said the completion follows the receipt of all approvals from the authorised agencies of the country’s Federal Government.

However, SPDC according to the report will retain its interest in the Port Harcourt Industrial and Residential Areas, that fall within the lease area.

SPDC also maintained that it is committed to transfer OML 17 in an orderly and responsible manner to the new owner, so as to help provide a sustainable long-term plan to unlock its full potential.

The corporation posited the sale was necessary towards enabling SPDC focus on supporting the Federal Government’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.

The report also indicated that other SPDC JV partners, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited, have also assigned their interests of 10 per cent and 5 per cent in the lease, giving TNOG Oil and Gas Limited a 45 per cent interest in OML 17.

Meanwhile, according to the Managing Director, SPDC and Country Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor; “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”.