TNOG Oil and Gas Ltd. acquired 45% in Oil Mining Lease (OML) 17 and associated infrastructure in Eastern Niger Delta from Shell (30%), Total SE (10%), and Eni (5%). TNOG will be sole operator in the lease.
OML 17 is a large onshore license and includes the northern half of Port Harcourt. There are 15 oil and gas fields in OML-17, six of which are producing.
The lease has 27,000 boe/d current production capacity and 2P reserves of 1.2 billion boe, with an additional 1 billion boe resources for further exploration potential.
TNOG Oil will pay Shell $533 million and will pay Total $180 million. A total of $453 million was paid to Shell and $150 million was paid to Total at completion of the sale with the balance to be paid over an agreed period.
TNOG is a related company of Heirs Holdings Ltd. and Transnational Corp. of Nigeria Plc (Transcorp).