THE investment of over $1billion by Heirs Holding to acquire strategic OML 17 from Shell, ENI and Total,  has been described by various analysts as an affirmation of confidence in Nigeria’s economy.

At a time of increased pessimism and in Nigeria’s economy, the deal shines a light on available opportunities.

Heirs Holdings has also demonstrated as a committed indigenous business especially with the presence of Transcorp, Nigeria’s largest listed conglomerate, with over 300,000 shareholders in the transaction.

The deal further demonstrates the ability of Tony Elumelu-led Heirs Holdings to spearhead Africa’s economic resurgence, amid the danger posed by COVID-19 pandemic.

Heirs Holdings , the leading African strategic investor, in partnership with Transnational Corporation of Nigeria Plc (“Transcorp”), acquired 45 per cent 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. The remaining 55 per cent stays with Nigerian National Petroleum Corporation (NNPC).

In addition, the Heirs Holdings Group will take over operatorship of OML 17, demonstrating the strength and quality of the industry team assembled by Elumelu’s group.

Elumelu said: “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.”

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 and the trading arm of Shell, as an offtaker. Heirs Holdings’ ability to bring together global and African investors, in one of the biggest African deals of the last 10 years, is a tribute to its professionalism and determination. It reassures global investors of the country’s untapped investment opportunities and affirms the company’s commitment to improving lives and transforming Africa.”

The acquisition is another evidence of Heirs Holdings strategic intent in relation to the Nigerian energy sector – to ensure that Nigerian natural resource assets are deployed in Nigeria’s power network, driving broad-based economic growth. 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 US$300 million Afam acquisitions in November 2020.

Heirs Holdings has been at the forefront of Elumelu’s Africapitalism philosophy, championing the private sector’s leadership in developing Africa. TNOG Oil and Gas, HH’s latest investment and addition to a fast-growing and successful group of investee companies across energy, financial services, hospitality, real estate, and healthcare sectors, will create thousands of jobs for Nigerian youth across the country, expanding its current 30,000 employee database across its portfolio companies. TNOG Oil and Gas will also extend Heirs Holdings’ “doing good, doing well” commitment to developing the communities of its operations through pillars of entrepreneurship, youth development and community building, pursuing an indigenous approach to catalysing development in host communities.