KEY POINTS
- Heirs Energies has obtained a $750 million facility from Afreximbank to refinance debt and fund expansion, aiming to double its oil and gas production.
- Chairman Tony Elumelu revealed past political delays in acquiring its major asset, OML 17, due to governmental scepticism about private sector capability.
- The deal is highlighted as an example of African institutional capital fostering energy security and industrial growth on the continent.
Nigerian indigenous energy producer Heirs Energies has secured a major seven hundred and fifty million dollar financing facility from the African Export-Import Bank.
The deal, signed in Abuja on Saturday, is aimed at significantly scaling up the company’s oil and gas output, with a target of reaching one hundred thousand barrels of crude per day and two hundred and fifty million cubic metres of gas.
The company’s chairman, Tony Elumelu, hailed the agreement as a landmark vote of confidence in African institutions and businesses.
He praised Afreximbank for its pivotal role, stating the bank had demonstrated the “boldness to support African businesses” throughout Heirs Energies’ growth journey. The facility is structured to refinance existing debt and provide fresh capital for expansion under a five-year, reserve-based lending framework.
Elumelu also provided a rare insight into the political hurdles faced during the company’s initial acquisition of Oil Mining Lease 17 from Shell, Total, and Eni. He revealed the transaction under the previous administration was delayed as officials, he claimed, considered the asset too large for private sector control.
“Our government at the time refused to approve it because it was considered too big for the private sector, forgetting that Shell itself was a private sector entity,” Elumelu said, noting the delays imposed heavy financial costs.
Financing Tied to Broader Continental Energy Stability
The executive director and chief financial officer of Heirs Energies, Samuel Nwanze, outlined the operational targets. The funding is designed to help scale production from a current base of over fifty thousand barrels per day and one hundred and twenty million cubic metres of gas.
He added that increased gas output from their assets is already improving power generation capacity on Nigeria’s eastern domestic gas network, supplying plants like Geometric and Transcorp.
For Afreximbank, the support is framed as part of a essential mission to stabilise a critical continental sector. The bank’s president, Dr George Elombi, stated that without such support, nearly two dozen African countries would face serious economic trouble.
He indicated the bank is preparing additional billion-dollar interventions in the energy sector, emphasising its commitment as an African-owned institution to stand by partners in both good and challenging times. The deal underscores a growing trend of African capital being deployed to develop African resources, with performance and trust cited as the bedrock of the partnership.
