Elumelu’s firm acquires stakes in oil block for $1.1bn

TNOG Oil and Gas Limited, has reached an agreement with three international oil companies operating in Nigeria to acquire their combined 45 per cent interest in Oil Mining Lease 17 and related assets in the Eastern 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, a company founded by Mr Tony Elumelu.

SPDC announced in a statement on Friday 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.

TNOG Oil and Gas is a related company of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc, both of which have Elumelu as their chairman.

“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.”

“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,” said the Managing Director of SPDC and Country Chairman of Shell companies in Nigeria, Mr Osagie Okunbor.

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