Page 14 - AfrOil Week 03 2021

AfrOil INVESTMENT AfrOil

The sale of this asset will allow SPDC to bring its the parties had secured financing for the $1.1bn
operations at other licence areas in line with the package from a group of international and
Nigerian government’s energy strategy “through regional banks and investors.
oil and gas production, payment of royalties, OML 17 lies in the eastern Niger River Delta
taxes and levies, as well as advancing local con- and is currently yielding around 27,000 barrels
tent and providing social investments,” it added. of oil equivalent per day (boepd). It holds 1.2bn
Osagie Okunbor, SPDC’s managing director, barrels of oil equivalent (boe) in proven and
said he expected the transfer of the stake to pro- probable (2P) reserves, and further exploration
ceed smoothly. “As with previous divestments, may raise that figure by another 1bn boe.
we will facilitate a successful transition to new Tony Elumelu, the chairman of Heirs Hold-
ownership. Shell has been in Nigeria for over 60 ing, said last week that TNOG Oil & Gas hoped
years and remains committed to a long-term to use OML 17 as the basis of a larger company.
presence here,” said Okunbor, who also serves “We have a very clear vision: creating Africa’s
as the country chairman of Shell companies in first integrated energy multinational, a global
Nigeria. quality business, uniquely focused on Africa and
Two other transactions involved other share- Africa’s energy needs,” he said. “The acquisition
holders in OML 17 – Total E&P Nigeria, a sub- of such a high-quality asset, with significant
sidiary of Total (France), and Nigerian Agip Oil potential for further growth, is a strong state-
Co., a subsidiary of Eni (Italy). Shell noted in its ment of our confidence in Nigeria [and in] the
statement that these two companies had trans- Nigerian oil and gas sector and a tribute to the
ferred holdings of 10% and 5% respectively in extremely high-quality management team that
OML 17 to TNOG Oil & Gas. As a result, it said, we have assembled.”
the Nigerian company’s total equity stake now Elumelu continued: “As a Nigerian, and
amounts to 45%. more particularly an indigene of the Niger
The stake sales occurred in tandem with Delta region, I understand well our responsibil-
separate agreements naming Schlumberger as ities that come with stewardship of the asset, our
TNOG Oil & Gas’ technical partner and desig- engagement with communities and the strategic
nating a trading arm of Shell as an off-taker of importance of the oil and gas sector in Nigeria.
production from OML 17, Heirs Holding noted We see significant benefits from integrating our
in a separate statement last week. production, with our ability to power Nigeria,
The Nigerian company did not reveal the through Transcorp, and deliver value across the
value of each individual deal but reported that energy value chain.” ™

Sonangol set to sell off stakes

in two foreign assets this year

ANGOLA ANGOLA’S national oil company (NOC)
Sonangol is due to begin the process of divest-
ing its stakes in two foreign assets before the end
of this year.
According to the national press agency
ANGOP, the sales will take place within the
framework of the government’s privatisation
programme, known as ProPriv, which provides
for Sonangol to unload 70 non-core assets by the
end of 2022. The assets slated for sale in 2021
include the NOC’s 30% stake in China Sonan-
gol International Holding (CSIH) and its stake
in Empresa Nacional de Combustíveis e Óleos
(ENCO) of São Tomé and Príncipe, ANGOP The company is due to sell off 70 assets by the end of 2022 (Photo: Sonangol)
said.
The press agency did not say when Sonan- exploration, development, production and sale
gol might go forward with its plans. It noted, of crude oil.
though, that equity in CSIH was split 30% to Sonangol is currently the largest single share-
Sonangol and 70% to Dayuan International holder in ENCO, which is involved in the dis-
Development, a Hong Kong-based company tribution and sale of petroleum products in São
that carries out infrastructure projects in Tomé and Príncipe. It has owned a 76% stake in
developing countries. CSIH is engaged in the ENCO since 2008.

P14 www. NEWSBASE .com Week 03 20•January•2021