Elumelu’s Firm Buys Shell, Total, ENI Stakes In Oil Blocks

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Elumelu's Firm Buys Shell, Total, ENI Stakes In Oil Blocks - Vantage News Nigeria

Tony Elumelu’s intergrated energy company, TNOG oil and gas limited, has bought 45 per cent interest in oil mining lease 17 and related assets of three international oil companies operating in the Niger Delta.

Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited assigned their interests of 30 per cent, 10 per cent and five per cent respectively in the lease to TNOG Oil and Gas.

Following a statement on Friday, SPDC announced the completion of the sale of its 30 per cent interest in OML 17 and associated infrastructure to TNOG Oil and Gas for a consideration of $533m.

The oil major said the completion followed the receipt of all approvals from the relevant authorities of the Federal Government of Nigeria.

“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,” the SPDC said.

Elumelu recounted the clear vision of his company which is: creating Africa’s first integrated energy multinational, a global quality business uniquely focused on Africa and Africa’s energy needs.

In his words, “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.”

He also noted that as a Nigerian, and more particularly an indigene of the Niger Delta region, he understands well the responsibilities that comes with stewardship of the asset, 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.” he said.

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