Heirs Energy targets output surge with $750m Afreximbank funding

Heirs Energy has set out an ambitious expansion plan to sharply raise Nigeria’s oil and gas production, leveraging a $750 million financing facility secured from the African Export-Import Bank (Afreximbank).

The indigenous energy company said the funding will be channelled into scaling crude oil production to about 100,000 barrels per day, while gas output is expected to rise to roughly 250 million cubic metres. The expansion is aimed at strengthening upstream operations and deepening Nigeria’s energy security drive.

Chairman of Heirs Holdings, Tony Elumelu, described the facility as a strong endorsement of African enterprise by African institutions, singling out Afreximbank for its growing role in backing large, transformational projects on the continent.

“Afreximbank has shown uncommon boldness in supporting African businesses at scale. It is today the most impactful and catalytic financial institution on the continent,” Elumelu said.

He noted that the bank’s decision to restructure existing obligations and provide fresh capital underscored confidence in Heirs Energy’s long-term growth strategy.

“The willingness to create room for us to expand again shows belief in this business. Afreximbank has been with us from the start and is now helping us move to a higher level,” he said.

Elumelu added that access to significant funding also imposed a duty of discipline and performance, disclosing that the company had met all its obligations despite the challenges posed by oil theft across the Niger Delta.

He recalled that the acquisition of Oil Mining Lease (OML) 17 faced regulatory headwinds under the administration of former President Muhammadu Buhari, largely because the asset was considered too large for private sector ownership.

“The irony was that Shell itself, from which we acquired the asset, is a private company. Those delays came at a huge financial cost,” he said.

President of Afreximbank, Dr George Elombi, said the bank’s support for Heirs Energy aligned with its strategic focus on stabilising Africa’s energy sector, which he described as central to economic resilience.

“If the energy sector collapses, at least 23 African countries would face serious economic trouble,” Elombi said, adding that the bank was preparing further billion-dollar interventions across the continent.

He stressed that Afreximbank’s African ownership reinforced its commitment to support African businesses through both favourable and difficult cycles.

Explaining the structure of the facility, Heirs Energy’s Executive Director and Chief Financial Officer, Samuel Nwanze, said the funding was designed to consolidate recent operational gains while unlocking the next phase of growth.

“At present, we are producing over 50,000 barrels of oil per day and about 120 million cubic metres of gas. This facility positions us to double oil production and more than double gas output,” Nwanze said.

He disclosed that the company raised about $1.1 billion to acquire OML 17 from Shell, Total and Eni, noting that most of the acquisition financing had been repaid after nearly four years of operations.

According to him, the new funding is structured as a five-year reserve-based lending facility, combining refinancing of existing debt with additional capital made possible by the increased capacity of the asset.

“The refinancing strengthens our balance sheet, while the incremental funding will be deployed to pursue growth,” he said.

Nwanze added that higher gas production from OML 17 was already improving electricity supply across Nigeria’s eastern domestic gas corridor, with power plants such as Geometric Power and Transcorp recording better capacity utilisation.

Heirs Energy also disclosed that the NNPC/Heirs Energies OML 17 Joint Venture has entered Gas Flare Commercialisation Agreements under the Nigerian Gas Flare Commercialisation Programme, a move aimed at eliminating routine flaring and converting previously wasted gas into economic value.