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OML 17 Has Historically Produced 100,000 barrels Per Day – TNOG CEO

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Sam Nwanze the Executive Vice President of TNOG oil and gas limited, a related company of Heirs Holdings and Transcorp Plc which recently completed a $1.1 billion deal to acquire oil mining lease (OML) 17 from Shell, Total and ENI, has said the asset has produced as high as 100,000 barrels a day in the past.

OML 17, which is located in Rivers state in Nigeria covers about 1,300 square kilometers, has about 1.2 billion barrels of oil equivalents (boe), 2.2 tcf of gas, and additional exploration opportunities of about 1 billion barrels, according to Nwanze who spoke in an interview on Arise TV monitored by MoneyCentral.

The asset currently produces 27,000 barrels per day of crude.

“The 27,000 barrels, that is actually the low point, this asset historically has done as high as over 100,000 barrels, and the resources are there, the facilities that can carry that capacity is already existing, and so we have bought into the potential of the asset, and the turnaround capabilities of Heirs Holdings to get this asset to where it should be operating at,” Nwanze said.

The funding for the deal was raised from the international markets.

It was largely advised by Standard Chartered Bank and United Capital plc, a local financial services firm, and other financial institutions like ABSA, the Afrexim Bank, Standard Chartered, the AFC as part of the deal,

“You also have some international organizations’ like one of the largest asset management companies in the world, based in Europe, Amundi asset management also participated in the deal,” Nwanze said.

Read Full Interview in MoneyCentral’s print edition of Monday January 25th, 2021.

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