Abuja, Nigeria
Heirs Energy, a leading indigenous Nigerian energy company, has secured a $750m (£592m) financing facility from the African Export-Import Bank (Afreximbank) to significantly scale up its oil and gas operations. The deal, signed in Abuja on Saturday, is aimed at nearly doubling the firm’s output and strengthening Nigeria’s domestic energy security.
The financing is structured to lift the company’s crude oil production from its current 50,000 barrels per day (bpd) to a target of 100,000 bpd. Additionally, gas output is expected to rise to roughly 250 million cubic metres. The facility, a five-year reserve-based lending framework, will be used both to refinance existing debt and to provide fresh capital for expansion in the Niger Delta.
‘African Capital for African Business’
Tony Elumelu, Chairman of Heirs Holdings, described the transaction as a “strong vote of confidence” in African enterprises. He praised Afreximbank for its “boldness” in supporting large-scale indigenous projects that were previously seen as too large for the local private sector.
“The most impactful and catalytic finance institution in Africa is Afreximbank,” Mr Elumelu said. “They have grown the capacity and the boldness to support African businesses.”
Mr Elumelu also touched upon the history of the company’s flagship asset, Oil Mining Lease 17 (OML 17), which was acquired from global giants Shell, Total, and Eni. He noted that the acquisition had previously faced delays under the former administration of Muhammadu Buhari due to concerns that the asset was too large for a private Nigerian firm to manage. Despite industry-wide challenges—including widespread oil theft in the region—he confirmed that Heirs Energy had remained consistent in meeting its financial obligations.
Powering the Grid
The expansion is expected to have a direct impact on Nigeria’s perennially struggling power sector. Heirs Energy already supplies gas to the country’s eastern domestic network, powering major industrial hubs and electricity plants.
Key targets for the $750m facility include:
- Oil Production: Doubling output to 100,000 barrels per day.
- Gas Output: Increasing to 250 million cubic metres to support power generation.
- Environmental Impact: Implementing agreements to end “gas flaring”—the burning of excess gas—by converting it into usable economic value.
Dr George Elombi, Executive Vice President of Afreximbank, stated that the bank’s support for Heirs Energy is part of a broader commitment to continental stability. He warned that without support for the energy sector, “about 23 African countries would be in serious trouble,” adding that the bank is preparing further billion-dollar interventions to stabilise the industry across Africa.
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