Transcorp To Begin Oil Production In 2014

Transnational Corporation of Nigeria Plc, a conglomerate with interests in energy and hospitality has announced plans to produce its first oil next year.
 The company said yesterday in an emailed note to investors that it would pump oil from Lease 281 in the Niger River delta by the end of 2014. 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  Transcorp, the start of crude output may help restore profit after earnings slumped 58 per cent last year.
Transcorp also took control of the Ughelli power plant this month as part of a privatisation programme.
“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 Limited, said by phone.
The new hotel, a venture with Hilton Worldwide, will be built in Port Harcourt, the capital of Rivers State, according to Transcorp, which plans to start work on the site in the first quarter of 2014. The company said in 2011 it would build eight hotels under the Hilton name in Nigeria.
Transcorp rose 10 percent to N4 in Lagos, the highest closing price since March 2008. The stock has more than tripled in value this year, compared with a 36 percent gain in the Nigerian Stock Exchange All-Share Index.

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