Heirs energies seals $750m financing deal with Afreximbank

Heirs Energies Ltd has sealed a $750 million financing agreement with the African Export-Import Bank (Afreximbank) to boost the company’s drive for energy efficiency. The agreement was signed by Mr. Tony Elumelu, the Chairman of Heirs Holdings and Dr. George Elombi, the President and Chairman of the Board of Directors, Afreximbank, in Abuja over the […]

Heirs Energies Ltd has sealed a $750 million financing agreement with the African Export-Import Bank (Afreximbank) to boost the company’s drive for energy efficiency.

The agreement was signed by Mr. Tony Elumelu, the Chairman of Heirs Holdings and Dr. George Elombi, the President and Chairman of the Board of Directors, Afreximbank, in Abuja over the weekend.

Speaking at the event, Chairman of Heirs Holdings, Tony Elumelu described the agreement as a clear manifestation of Africa’s capital working for African businesses.

He commended Afreximbank for supporting the growth of African businesses, describing it as the most impactful and catalytic financial institution in Africa, while urging African business leaders to always endeavour to retain the confidence of financial institutions that support their investments.

“Afreximbank has grown the capacity and the boldness to support African business. And that is what I say to my fellow private sector leaders, when financial institutions support you, the least you owe them is to perform.

“You encourage them to do more for you and for others also. And that is very important,” he said.

The Afreximbank President, Dr. George Elombi, stated that the bank was committed to supporting businesses in Africa to grow.

According to Elombi, Afreximbank is currently working on an energy bank which will handle most of this energy portfolio.

“We will put tremendous capital into this and we will ensure that it is also as good and innovative as Afreximbank itself has been so that we can continue to support that sector,” he said.

Samuel Nwanze, the Executive Director and Chief Financial Officer for Heirs Energy, said that the $750 million funding was meant to scale the company.

“What we are doing with this financing is to position the company for the next phase of growth that we are pursuing. We are looking at the potential we see in this asset. We think this asset can do up to 100,000 barrels of crude oil per day from the current capacity of about 55,000 barrels.

“We are working towards getting to about 100,000 barrels of oil over the next three years and also to deliver about 250 million standard cubic feet of gas,” he said.

Nwanze said that the main aim of Heirs Holdings going into the oil and gas business is to drive the energy sufficiency for the country.

Since assuming operatorship of OML 17, Heirs Energies has delivered a disciplined transformation programme, focused on restoring production, strengthening asset integrity, and improving operational efficiency. Through targeted brownfield interventions and infrastructure optimisation, the Company has successfully transitioned from acquisition-led financing to a capital structure aligned with the long-term development profile of its reserves.

Oil and gas production has doubled, from an acquisition production level of 25,000 barrels of oil per day (bopd) and 50 million standard cubic feet of gas per day (mmscf/d). Today, OML-17 produces over 50,000 bopd and 120 mmscf/d. All the gas production goes into the Nigerian domestic gas market and has been catalytic for power generation in Nigeria. Community relations have been transformed and the highest standards of health and safety implemented.