In a significant move for Nigeria’s indigenous energy sector, Heirs Energies has secured a $750 million financing facility from the African Export-Import Bank (Afreximbank). The deal, signed in Abuja, is set to be a catalyst for the company’s upstream expansion, with the goal of doubling its current production capacity to meet national energy demands.
The financing is structured to support Nigeria’s broader industrial growth by scaling crude oil production to 100,000 barrels per day (bpd) and increasing gas output to 250 million cubic metres.
Strategic Expansion and Debt Refinancing
The facility utilizes a five-year reserve-based lending (RBL) framework. According to Samuel Nwanze, CFO of Heirs Energies, the funds will serve two primary purposes:
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Scaling Operations: Moving from the current 50,000 bpd to the 100,000 bpd milestone.
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Financial Consolidation: Refinancing existing debt incurred during the initial $1.1 billion acquisition of OML 17 from Shell, Total, and Eni.
A Vote of Confidence in Indigenous Firms
Chairman of Heirs Holdings, Tony Elumelu, hailed the transaction as a “bold” endorsement of African institutions. He noted that despite the operational hurdles of oil theft and historical regulatory delays—where the acquisition of OML 17 was once stalled due to its massive size—the company has maintained a perfect record of meeting its financial obligations.
Elumelu emphasized that this partnership proves African capital can effectively power large-scale African businesses, moving away from a total reliance on Western financing for major infrastructure.
Impact on National Energy Sufficiency
The ramp-up in gas production is expected to have an immediate ripple effect on Nigeria’s power sector. Increased output from OML 17 already feeds into the eastern domestic gas network, supporting critical power plants such as Transcorp and Geometric Power.
