Tony Elumelu announces new $1Billion Heirs Holding deal

Chairman of Heirs Holdings Tony Elumelu on Saturday announced a new investment deal of the firm to acquire Nigerian oil license OML 17 from Shell, ENI and Total. The financial firm in partnership with Transnational Corporation of Nigeria Plc. (Transcorp) acquired 45 percent participating interest in the OML 17 deal and related assets through TNOG Oil and Gas Limited, a subsidiary of Heirs Holdings and Transcorp. The remaining 55 percent will be retained by the Nigerian Petroleum Corporation (NNPC).

“I’m thrilled to announce the US$1.1 billion transaction by @hiersholdings on the acquisition of a 45% participating interest in Nigerian oil license OML 17, and related assets, from Shell, Total & ENI through TNOG Oil and Gas. TNOG is also the sole operator of OML 17,” Elumelu said. TNG Oil and Gas, the Oil & Gas subsidiary of @heirsholdings, joins other strategic HH portfolio holdings, @ transcorpnigeria Power Plant, and recently acquired Afam Power Plc & Afam Three Fast Power, to consolidate on our strategy to create the leading integrated energy business in Africa.”

Also, the operatorship of OML 17 will be handed over to the Heirs Holding Group to show the strength and capability of the industry team put together by the Elumelu team. Analysts have said that the acquisition is good for the Nigerian economy as it brings a wave of new opportunities to the struggling economy.

“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,” Elumelu said. “We have a very clear vision of creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s needs.”

Elumelu added that the acquisition of a high-quality asset like the OML 17 signifies potential for more growth in Nigeria. It also creates more room for strategic benefits and the ability to power the nation through Transcorp, while delivering value across the energy value chain.

“This deal further demonstrates Transcorp’s integrated energy strategy and our determination to Power Africa,” said Owen Omogiafo, President and GCEO of Transcorp.

Transcorp, through its Transcorp Power Plant and Afam Power Plc, and Afam Three Fast Power Limited, is one of the biggest power producers in Nigeria, with 2000 MW of installed capacity. The conglomerate acquired Afam Power Plc and Afam Three Fast Power Limited in November 2020 in a $300 million acquisition deal.

Heirs Holdings had a group of legal firms to offer advice and other legal services towards the deal. The firm was advised by Standard Chartered Plc, as a Global Coordinator, and United Capital Plc. Other organizations involved in the deal include ABSA, Afreximbank, African Finance Corporation, Hybrid Capital, Union Bank of Nigeria, and global asset management firm Amundi.

The acquisition deal also involved Schlumberger as a technical partner and the trading arm of Shell as the off-taker.

This Heirs Holdings deal is one of the biggest deals in the continent in the last 10 years. It aims to once again assure global investors of the many untapped opportunities in Nigeria and Africa at large. Also, the firm is committed to improving lives and transforming Africa.