The Shell Petroleum Development Company of Nigeria Limited has completed the sale of its 30 percent stake in Oil Mining Lease (OML) 17 in the Niger Delta to TNOG Oil and Gas Limited, owned by Heirs Nigeria Limited.
The company said in a statement Friday, that the OML 17 and its associated infrastructure were sold to the company for $533 million.
TNOG Oil and Gas is a related company of Heirs Holdings Limited owned by Mr Tony Elumelu and Transnational Corporation of Nigeria (Transcorp) Plc.
Heirs Holdings Limited and Transcorp are both chaired by Elumelu, who is also the Chairman of United Bank for Africa (UBA) Plc.
The OML 17 has a production capacity of 27,000 barrels of oil equivalent per day.
The field has estimated proven and probable reserves of 1.2 billion barrels and an additional one billion barrels in possible reserves — all of oil equivalent.
According to Shell, the deal was completed after approval by the Federal Government.
The statement read: “A total of $453m was paid for OML 17 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.”