he funding is expected to double the indigenous producer’s crude oil output to around 100,000 barrels per day and lift gas production to approximately 250 million cubic metres, strengthening supply to Nigeria’s power and industrial sectors at a time of persistent energy shortages.

Facility structured to support expansion and refinancing

The facility was signed in Abuja and is structured as a five-year reserve-based lending arrangement, combining refinancing of existing debt with fresh capital for expansion.

Speaking at the signing, Chairman of Heirs Holdings, Tony Elumelu, framed the deal as evidence of growing confidence in African-owned enterprises and institutions.

“The most impactful and catalytic finance institution in Africa is Afreximbank. They have grown the capacity and the boldness to support African businesses,” Elumelu said, describing the transaction as “Africa financing Africa’s future”.

He noted that Afreximbank’s willingness to restructure facilities and provide room for expansion reflected confidence in Heirs Energies’ long-term prospects. According to him, patient capital and disciplined execution have been central to the company’s progress since acquiring Oil Mining Lease 17.

Heirs Energies currently produces over 50,000 barrels of oil per day and about 120 million cubic metres of gas. The new funding is designed to consolidate those gains and unlock the next phase of growth, according to Executive Director and Chief Financial Officer, Samuel Nwanze.

“This funding is designed to help us scale to about 100,000 barrels per day and 250 million cubic metres of gas,” Nwanze said.

He added that when the company acquired OML 17 from Shell, Total and Eni, it raised roughly $1.1 billion, most of which has been repaid over nearly four years of operations. Increased gas output from the asset has already boosted electricity generation across Nigeria’s eastern domestic gas network, supporting power plants including Geometric and Transcorp.

Source: Africabusinessinsider