Heirs Holdings and its affiliates Transcorp announced at the start of this year a transformative acquisition of a 45% participating interest in OML 17 from the Shell Petroleum Development Co. (SPDC) joint-venture. The transaction remains one of the largest oil & gas financings in Africa with a financing component of $1.1bn.
Seven months later, new operator Heirs Oil & Gas (HHOG) has already increased production by 40% and reached a production of 40,000 boepd. The information was revealed by HHOG’s new CEO, Osayande Igiehon and announced by Heirs Holdings Chairman Tony Elumelu in early August.
Upon its acquisition, OML 17 had a production capacity of 27,000 barrels of oil equivalent per day (boepd) and 2P reserves of 1.2 billion barrels of oil equivalent (boe) according to Heirs Holdings’ estimates, with an additional 1 billion boe of resources for further exploration potential. The ability of a new local player to take over an onshore asset so efficiently and increase output in less than a year is an encouraging achievement as Nigeria still struggles to increase oil & gas production.
Meanwhile, industry sources have confirmed to Hawilti that OML 17’s Agbada non-associated gas plant is currently in commissioning phase. The 80 MMscfd facility will be upgrading existing gas infrastructure developed by Shell during its years of operatorship.