Transnational Corporation of Nigeria Plc has unfolded plans to convert its Oil Prospecting Licence (OPL) 281 asset (located in Delta state) to Oil Mining Lease (OML) for commercial production by second quarter (Q1) of 2019.
Already, the company has engaged a new technical partner and is in the process of finalizing arrangement for the pre-exploratory activities expected to kickoff by the first quarter (Q1) of 2019.
The Chief Executive Officer of the company, Adim Jibuno while addressing participants at the Transcorp Plc’s investors’ conference held in Lagos yesterday said the company was poised to optimize the huge gas deposit in OPL 281 and boost oil and gas contribution to nation’s growth.
According to him, the conversion of OPL 281 to OML is expected to boost the company’s profitability on the long run, 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 will bring unlocking 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.
To further maximize its existing assets, Jibuno said the company plans to invest in petrochemicals and fertilizer production in a near future
He said the investment in petrochemical business is expected to attract revenue of about $5 billion for the company.
“There is no day we do not use derivatives of crude oil. Petrochemicals are derivatives of hydrocarbon and crude so we only need to build capacity and achieve this. We are looking at maximizing the asset we have.”
The Chief Executive Officer of Transcorp Power Limited, Kalyana Sundaram said beyond the oil and gas strategy, the company has repositioned the power business to deliver a sustained increase in available and generated capacity in Nigeria.
According to him, the power business would continue to consistently lead the power generation sector in Nigeria, in terms of capacity and with an impeccable health and safety record.
He disclosed that the company is aggressively pursuing plans to increase the current 15 per cent contribution to the nation’s power generation to 25 per cent by 2027.
He assured that considering the company’s current 15 per cent contribution to power need, increasing the figure to 25 per cent can not be unachievable.