Heirs Energies Raises $750 Million Afreximbank Facility to Double Oil Output and Boost Gas Supply in Nigeria
Nigeria’s efforts to rebuild domestic energy capacity received a significant boost after Heirs Energies secured a $750 million financing facility from the African Export-Import Bank (Afreximbank), marking one of the largest Africa-backed energy transactions concluded this year.
The funding is expected to double the indigenous producer’s crude oil output to around 100,000 barrels per day and increase gas production to approximately 250 million cubic metres, strengthening supply to Nigeria’s power and industrial sectors amid persistent energy shortages.
The facility, signed in Abuja, is structured as a five-year reserve-based lending arrangement that combines refinancing of existing debt with fresh capital for expansion.
It is designed to support Heirs Energies’ upstream operations while aligning with Nigeria’s broader objective of reducing energy imports, stabilising electricity supply, and driving industrial growth.
Speaking at the signing ceremony, Chairman of Heirs Holdings, Tony Elumelu, described the transaction as a strong signal of growing confidence in African-owned enterprises and financial institutions.
He characterised Afreximbank as one of the continent’s most impactful and catalytic development finance institutions, noting that its willingness to restructure facilities and support expansion reflects confidence in Heirs Energies’ long-term prospects.
Elumelu said the financing validates the company’s progress since acquiring Oil Mining Lease 17, highlighting the importance of patient capital and disciplined execution in stabilising assets and growing production.
He added that flexibility from lenders plays a critical role in enabling African companies to scale sustainably.
Heirs Energies currently produces more than 50,000 barrels of oil per day and about 120 million cubic metres of gas.
According to Executive Director and Chief Financial Officer Samuel Nwanze, the new funding is designed to consolidate these gains and unlock the next phase of growth.
He noted that the company raised approximately $1.1 billion to acquire OML 17 from Shell, Total, and Eni, with most of that financing already repaid over nearly four years of operations.
Nwanze said increased gas output from the asset has already contributed to higher electricity generation across Nigeria’s eastern domestic gas network, supporting power plants such as Geometric and Transcorp.
As production expands further, he said, the impact on energy supply and industrial activity will become more pronounced, both in Nigeria and across the wider region.
The facility includes refinancing of existing obligations alongside additional borrowing capacity linked to the expanded reserves base of the asset.
Nwanze explained that growth in reserves has enabled access to additional capital, with funding allocated between expansion projects and debt refinancing.
Elumelu also acknowledged operational challenges, including regulatory delays following the acquisition of OML 17. He said approval processes under the previous administration took longer than anticipated, partly due to concerns around private ownership of a large oil asset.
These delays, he noted, carried real financial costs, compounded by ongoing issues such as oil theft, although the company has continued to meet its obligations.
For Afreximbank, the transaction aligns with its mandate to support African-owned companies in strategic sectors critical to economic resilience.
Speaking on behalf of the bank, President and Chairman Dr George Elombi said Afreximbank was confident in Heirs Energies’ leadership, governance, and asset base, emphasising that energy security remains central to Africa’s long-term development.
With the new financing in place, Heirs Energies is entering a phase focused on production optimisation and scale.
The company joins other Nigerian energy producers working to expand crude oil and gas output, reinforcing supply to power generation and industrial users as the country seeks to address long-standing energy constraints and strengthen economic growth.
