By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Conglomerate, Transnational Corporation of Nigeria Plc (Transcorp) on Monday said it has signed a production sharing contract with the Nigerian National Petroleum Corporation (NNPC).
Transcorp in a notice to the Nigerian stock exchange (NSE) said the production sharing contract (PSC) with the NNPC is for the development of its oil block OPL 281 which it won the block in the 2007 bid round and paid signature bonus of $30 million to Nigeria’s federal government.
The conglomerate said with the signing of the PSC, it will now proceed with its drilling plans for this prolific block with over 100mm barrels of proven P1 and 2P reserves of oil and 4tcf of gas reserves.
According to Transcorp, OPL 281 will be the centrepiece of its energy business and will provide the gas feed stock for its planned energy city in Delta State which will comprise its 1000MW capacity Transcorp Ughelli Power Plant, and proposed fertiliser and petrochemical plants.
Transcorp is partnering with Energy Equity Resources – a Nigerian oil and gas developer – and SacOil – an independent African oil and gas company based in South Africa – in the ownership and development of OPL 281.
Transcorp currently holds strategic portfolio investments in the hospitality, agribusiness and energy sectors. Its businesses include Transcorp Hilton Hotel, Abuja; Transcorp Metropolitan Hotel, Calabar; Ughelli Power Plc, Teragro Commodities Limited, operator of Teragro Benfruit plant – Nigeria’s first-of-its-kind juice concentrate plant; and Transcorp Energy Limited.
