Speak of brave entrepreneurs in Africa today; the name Tony Elumelu would ring a resounding bell. His conglomerate, Heirs Holdings’ is fully committed to the development of Niger Delta region, while its approach to business underscores its obligation to Africa’s growth. His company Heirs Holdings, made a bold move this year by successfully acquiring 45 per cent participating interest in Oil Mining Licence17.
This emphasizes the winning spirit of Nigerian indigenous companies, such as his. OML 17 is a large onshore licence within the NNPC/Shell JV with production capacity of 27,000 barrels per day equivalent per day and 2P reserves of 1.2 billion barrels of oil equivalent and additional one billion barrels of oil equivalent resources of further exploration potential.Analysts and stakeholders in the Oil and Gas business have said the $1.1 Billion Oil Mining license, undertaken by TNOG Oil and Gas Limited, a subsidiary of Heirs Holdings and Transcorp, would impact on the Federal Government, communities and the entire nation’s economy.
Last week, Africa’s conglomerate and strategic investor, Heirs Holdings, in partnership with its affiliated company, Transnational Corporation of Nigeria Plc (Transcorp), announced its acquisition of a 45 per cent participating interest in Nigerian Oil Mining Licence (OML 17) and related assets, in a $1.1 billion investment, through TNOG Oil and Gas Limited, a related company of Heirs Holdings and Transcorp, from the Shell Petroleum Development Company of Nigeria Limited, Total Exploration and Production Nigeria Limited and ENI (Agip).This means TNOG is now the sole partner with the Nigerian National Petroleum Corporation (NNPC), retaining its 55 per cent stake in the asset and the deals.
Heirs Holdings Group will now take over operationship of OML 17, demonstrating the strength and quality of the industry team assembled by Elumelu’s group.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 $300 million Afam acquisitions in November 2020.Shell has 30 per cent stake in the asset, Total holds 10 per cent while Eni holds five per cent. The block includes the northern half of Port Harcourt, which is the largest city in the Niger Delta. It extends from the low-lying swamp northwards into drier terrain where the operating conditions are easier. There are 15 oil and gas fields on OML 17, six of which are producing.
Crude is exported through the Trans-Niger Pipeline, to the Shell-operated Bonny oil and gas terminal. The largest producer on OML 17 is Agbada.Born March 22, 1963, Tony Onyemaechi Elumelu is a Nigerian economist, entrepreneur, and philanthropist, who chairs Heirs Holdings, the United Bank for Africa and Transcorp. He is also the founder of Tony Elumelu Foundation. Elumelu holds the Nigerian national honours, the Commander of the Order of the Niger (CON) and Member of the Order of the Federal Republic (MFR) in 2003. He received Nigeria’s National Productivity Order of Merit in 2019.
Elumelu is included in Time magazine ‘s 100 Most Influential People of 2020.His foundation, The Tony Elumelu Foundation is a leading champion of entrepreneurship in Africa, with an objective to empower women and men across the African continent, catalysing economic growth, driving poverty eradication and ensuring job creation. Tony O. Elumelu, says he is personally committed to creating a new generation of entrepreneurs, through his investment company, Heirs Holdings.
The Foundation is active in all 54 African countries.In 2015, the Foundation launched the TEF Entrepreneurship Programme, a $100 million commitment by Tony Elumelu to empower 10,000 African entrepreneurs over 10 years. Building on the Programme’s success and its unique ability to identify, mentor and fund entrepreneurs across Africa, the Foundation is increasingly sharing its robust delivery platform and working in partnership with institutions such as United Nations Development Programme, the African Development Bank, the International Committee of the Red Cross, GIZ, and United Bank for Africa Plc, to create meaningful and permanent impact across Africa.His investment in OML 17 demonstrates his commitment to raise a generation of Afri-capitalism philosophers, and championing the private sector’s leadership in developing Africa.
This further advances the frontiers of Heirs Holdings’ integrated energy strategy, through long term investments that create economic prosperity and social wealth. The transaction has been described as one of the largest oil and gas financings in Africa in more than a decade, with a financing component of $1.1 billion, provided by a consortium of global and regional banks and investors.
