Transnational Corporation of Nigeria Plc (Transcorp) has disclosed plans to convert its Oil Prospecting License (OPL) 281 asset into a Oil Mining Lease (OML) for commercial production by second quarter of 2019. This was confirmed by the company’s Chief Executive Officer (CEO), Adim Jibuno, during Transcorp investors conference held, yesterday, in Lagos.
Conversion of OPL 281, located in Delta State, to OML will boost the company’s profitability, further diversify income streams, and translate to higher dividend for shareholders.
“Currently we are in OPL; we are still trying to produce. There are huge potentials for synergy in that sector; the transition unlock value in our energy business which we have been looking up to leverage as a conglomerate.
“Since we have confirmed that there is oil in commercial quantity and we have gotten regulatory approval, the next level is to convert OPL to OML.
“We are looking out for opportunities and those who are willing to divest and enter into partnership deals and transactions because we believe in opportunistic investment.”
What this means
The addition of OPL 281 to its portfolio of oil and gas assets will be another milestone in Transcorp’s strategy to create Nigeria’s leading integrated energy company, operating in production, refining, power generation, petrochemical and fertiliser production. OPL 281 is rich with nearly 4 trillion cubic feet (TCF) of natural gas. The conglomerate also plans to invest in petrochemical plants and fertilizer productions.
OPL 281 is an onshore block covering an area of 138km² and is located in the western delta region of Nigeria, 25 kilometres away from the Forcados Crude Export Terminal. The block was reinstated to Transcorp in April 2011. Current equity ownership is Transcorp 60 percent, EER 20 percent and SacOil 20 percent.
Transnational Corporation of Nigeria Plc (Transcorp), a company quoted on the Nigerian Stock Exchange (NSE), is a diversified conglomerate with strategic investments and core interests in the Hospitality, Agro-business and Energy sectors. Some of its more notable assets include OPL 281; Transcorp Hilton Hotel, Abuja; Transcorp Metropolitan Hotel, Calabar; and Terragro, the agribusiness subsidiary operating a fruit juice concentrate plant in Benue State, Nigeria.