Nigeria's Transnational Corp. to pump first oil next year
BY EMELE ONU
LAGOS, Nigeria (Bloomberg) -- Transnational Corp. of Nigeria Plc, a conglomerate with interests from energy to hospitality, plans to produce its first oil next year.
The company will pump oil from Lease 281 in the Niger River delta by the end of 2014, it said today in an emailed note to investors. It also plans a 5-star hotel in the oil-rich region.
Nigerian-owned companies are boosting their share of the country’s oil output by taking up fields in restive areas of the delta as international energy producers retreat. For Lagos-based Transnational Corp., or Transcorp, the start of crude output may help restore profit after earnings slumped 58 percent last year.
Transcorp also took control of the Ughelli power plant this month as part of a Nigerian privatization program.
“Oil, power and hospitality are growth sectors of the Nigerian economy, which investors believe will increase Transcorp’s income stream in the near future,” Sewa Wusu, an analyst at Lagos-based Sterling Capital Ltd., said by phone.