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Osayande Igiehon

Three Years of Remarkable Achievements

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Since its bold entry into the Nigerian oil and gas exploration and production business, integrated independent energy company, Heirs Energies Limited, continues to soar despite the challenging operating environment, writes Peter Uzoho

In January 2021, when the world, especially the global oil and gas industry, was still reeling with the adverse impact of the COVID-19 pandemic, Nigeria’s industry witnessed the news of a landmark deal of the year.
Then, Heirs Energies (formerly Heirs Oil & Gas Limited) was launched into the Nigerian E&P space, following the completion of an eight-year $1.2 billion transaction to acquire the prolific Oil Mining Lease (OML)17 from the Shell Petroleum Development Company of Nigeria Limited (SPDC), Total E&P Nigeria Limited, and ENI.
With the deal, Tony Elumelu-owned Heirs Energies began the solidification of the joint venture partnership with its new partner, the Nigerian National Petroleum Company Limited (NNPC), which controls 55 percent of the asset.
However, three years down the line, the company, which is still in a celebratory mood as it recently commemorated its third anniversary, has recorded a lot of milestone achievements since its emergence. Within the short scale of entrance into the oil and gas E&P space, Heirs Energies has displayed a track record of significant production increases, pioneered a new model of community engagement, built a world class Nigerian management team with a sound safety record, all contributing to a new beginning in ensuring Nigeria’s sustainable energy future.
The independent energy firm has consequently become a role model institution within the energy sector, through phenomenal milestones and achievements recorded. These achievements are credited to the company’s sound corporate governance and an excellent operational strategy, thus becoming a major competing force in the oil and gas business.

OIL PRODUCTION GROWTH

One major success achieved by Heirs Energies in the last three years of existence and post-asset acquisition is the significant rise in its oil production, which offered a huge boost to Nigeria’s oil production and revenue generation.
At a time when Nigeria is in dire need of optimising its oil output, Heirs Energies’ oil production has grown from about 27,000 barrels per day (bpd) at the take-over of operational control, to a peak of over 50,000bpd 100 days later by October 5, 2021.
Oil losses, which had reached a peak of 97 per cent late 2021 due to theft, has now been reduced to less than 15 per cent, with definitive actions taken by the government in collaboration with operators to address the pipeline security and related concerns.
Built from scratch, with a 100 per cent Nigerian organisation operating to international industry standards, Heirs Energies took over OML-17 asset operations on July 1, 2021, a month ahead of plan, and has been operating the asset without any major incident/accident.

 DOMESTIC GAS SUPPLY BOOST

Aside its contribution to the growth of Nigeria’s crude oil production, Heirs Energies has also ensured a steady gas production for domestic use, thus signing on to the federal government’s Decade of Gas objective, which aims to encourage more gas production for domestic use. The energy firm commenced gas production without delay and has rapidly become an important contributor to the domestic gas supply in Nigeria. It achieved its first gas from the Agbada Non-Associated Gas (NAG) Plant on November 21, 2021, after taking over the project in May 2021.The significance of this milestone is accentuated by the fact that the Agbada NAG plant had been under construction for over 10 years by the previous operator and upon takeover, the company demonstrated capability and expertise by quickly bringing the plant to mechanical completion and identifying further growth opportunities. It is gratifying to note that 100 percent of gas produced by Heirs Energies goes into the domestic market to meet local demand, providing energy to thousands of households, supplementing power plants, and supporting various gas-reliant industries in the region.

Also, the company started up Train 2 of the Agbada NAG, at the 80mmscf/d capacity gas production facility located in Port Harcourt, Rivers State. With this facility, Heirs Energies has expanded its footprint within the domestic gas market, allowing for an increased supply to gas-based industries and gas-powered electricity generators.
At the third anniversary ceremony of Heirs Energies held recently, the Chairman, Mr. Tony Elumelu, expressed his pride, while reflecting on his vision for the company. He stated: “As someone from the Niger Delta, I had seen firsthand how Nigeria’s resource wealth can be mishandled. The energy sector was an industry that had frankly not served Nigeria’s interest.  I knew Nigeria could do better and control her destiny.
“My vision was to build Africa’s largest indigenous-owned integrated energy company, focused on Africa’s unique energy needs. As I look back now, we have more than succeeded.”
Elumelu, who is also the Chairman of United Bank for Africa (UBA) and Transcorp, commended the Heirs Energies’ team, sharing his deep gratitude for their commitment to his vision of creating value for all stakeholders within the energy sector.
He said: “I want to take this opportunity and mark this anniversary, by saluting and thanking the Heirs Energies team, led by MD/CEO, Osa Igiehon.  Your hard work, dedication and expertise has enabled us to become a role model within the energy sector, as we strive towards our purpose of improving lives and communities across our continent.”

STRATEGIC REBRANDING

With the change in the global oil and gas industry’s dynamics, driven by the energy transition pressures and the need for companies to review their operational models to be fit for sustainability, the then Heirs Oil & Gas Limited, in 2023, responded by embarking on a transformative rebranding journey.
That move led to the company evolving from Heirs Oil & Gas to Heirs Energies. The change, according to the energy firm, “echoes our broader vision to not only meet Africa’s unique energy demands but to do so through sustainable and responsible practices that align with global standards”.

EXCELLENT SAFETY RECORDS

When it set out to become an energy company, Heirs Energies had taken a broad view of the kind of organisation it wanted to be known and remembered as in terms of safety culture and compliance, as well as the type of operator-host community relationship it wanted to have to ensure a peaceful operating environment.
Through the implementation of sound safety policies, the company has been able to achieve top quartile safety records. Specifically, Heirs Energies has sustained zero Lost-Time Incident (LTI)-free operations in OML 17 with 1.5 million man-hours operations in 2023.
The above record is a testament to the firm’s commitment to safety best practices as it maintains its zero incident and fatality record from inception.

ROBUST COMMUNITY ENGAGEMENT

However, in the area of community engagement that works for both parties, Heirs Energies has continued to live up to its philosophy of a Shared Destiny with local communities, by seeking out local talent and creating entrepreneurs.
As a result, over 300 young people have been empowered through skill acquisition programmes, from poultry & fish farming, fashion designing, catering, welding and fabrication etc.

Heirs Energies also carried out electrical infrastructure upgrades across host communities, which have impacted a population of over 270,000 people in Ikwerre, Etche, and Obio/Akpor local government areas  of Rivers State.The company’s intervention in education saw it support over 280 undergraduates from host communities with bursary and scholarship awards: classroom furniture upgrades in selected public schools in Etche and Obio/Akpor.Nevertheless, Heirs Energies pioneered establishing the Host Community Development Trust (HCDT), earning commendations from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and setting an industry benchmark for implementing an innovative governance structure, for the HCDT in the Nigerian oil and gas sector.

WORLD-CLASS NIGERIAN ORGANISATION

As a 100 per cent indigenous company, Heirs Energies takes particular pride in its fully Nigerian team, who are catalysing and delivering innovative technical solutions every day.
This is, indeed, a true demonstration of Nigerian excellence in institutionalising and executing key strategies.
Notably, the oil producer recognises the importance of a sustainable future and plans to play a role in Nigeria’s transition to a more sustainable energy source.  The company’s journey reflects a commitment to bring abundant and affordable power to schools, hospitals, and industries, shaping a sustainable future for Africa.

Also, Heirs Energies is reputed as one of Africa’s largest indigenous-owned integrated energy companies, committed to meeting Africa’s unique energy needs while aligning with global sustainability goals.
With a strong focus on innovation, environmental responsibility, and community development, the independent energy producer leads in the evolving energy landscape and contributes to a more prosperous Africa.

In recognition of its stellar performances within the short time it has been in operation, a number of reputable institutions have commended Heirs Energies through awards of different categories.
For instance, in 2023, Heirs Energies received the ‘Excellence in Sustainable Energy Operations’ award at the Nigerian Business Leadership Awards by BusinessDay Media. The honour, without doubt, was a resounding affirmation of the team’s vigorous dedication and fervent pursuit of sustainability in every of the company’s initiatives.Similarly, in 2022, it was awarded the ‘Africa Deal of the Year 2021’ by Project Finance International (PFI), following its $1.1 billion financing and acquisition of a 45 per cent stake in OML 17, in January 2021.

  • Culled from ThisDay News, Business Special, 12th Feb. 2024 / pg. 38

Heirs Energies Celebrates Third Anniversary

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  • Significant Milestones in Production Growth, Transformational Community Engagement, and a Sound Safety Record

LAGOS 19/01/2024 – Heirs Energies, Africa’s foremost indigenous-owned integrated energy company, commemorated its third anniversary.

In a short timescale, Heirs Energies has implemented a track record of significant production increases, pioneered a new model of community engagement built a world-class Nigerian management team, all contributing to a new beginning in ensuring Nigeria’s sustainable energy future.

Heirs Energies launched in January 2021, following the completion of an 8-year, $1.2 billion transaction to acquire oil license OML17, from the Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited, and ENI, and solidifying the joint venture partnership with the NNPC.

The Chairman of Heirs Energies, Tony O. Elumelu, CFR, expressed his pride, while reflecting on his vision for Heirs Energies, stating, “As someone from the Niger Delta, I had seen firsthand how Nigeria’s resource wealth can be mishandled.  The energy sector was an industry that had frankly not served Nigeria’s interest.  I knew Nigeria could do better and control her destiny. My vision was to build Africa’s largest indigenous-owned integrated energy company, focused on Africa’s unique energy needs. As I look back now, we have more than succeeded.”

Heirs Energies has become a role model institution within the energy sector. Milestones, and achievements within three-years of operations include:

  • Significant rise in oil production: At a time when Nigeria needs to optimise output, Heirs Energies’ oil production has surged from 27,000 to 40,000 barrels a day. Theft and losses which reached a peak of 97% late 2021, has now been reduced to less than 15%, with definitive actions taken by government to address the pipeline security and related concerns.
  • Steady gas production for domestic use: Heirs Energies commenced gas production and has rapidly become an important contributor to domestic gas supply in Nigeria. 100% of gas produced goes into domestic market to meet local demand, providing energy to thousands of households, supplementing power plants, and supporting various gas-reliant industries in the region.
  • Top quartile safety records:Heirs Energies boasts three incident free years, maintaining zero Loss Time Injury (LTI) operations in OML 17 with 1.5 million man-hours.
  • Community engagement that works: Heirs Energies continues to live up to a philosophy of a shared destiny with local communities, by seeking out local talent and creating entrepreneurs. Over 300 young people have been empowered through skill acquisition programmes, while the electrical infrastructure upgrades across host communities, have impacted a population of over 270,000 people.
  • A world-class Nigerian organisation: Heirs Energies takes particular pride in its fully Nigerian team, who are catalysing and delivering innovative technical solutions every day. A true demonstration of Nigerian excellence in institutionalising and executing key strategies.

Chairman, Heirs Energies, Tony O. Elumelu, commended the team, sharing his deep gratitude for their commitment to his vision of creating value for all stakeholders within the energy sector.

He said, “I want to take this opportunity and mark this anniversary, by saluting and thanking the Heirs Energies team, led by MD/CEO, Osa Igiehon.  Your hard work, dedication and expertise has enabled us to become a role model within the energy sector, as we strive towards our purpose of improving lives and communities across our continent.’

Heirs Energies recognises the importance of a sustainable future and plans to play a role in Nigeria’s transition to a more sustainable energy source.  The journey reflects a commitment to bring abundant and affordable power to schools, hospitals, and industries, shaping a sustainable future for Africa.

About Heirs Energies Limited

Heirs Energies Limited (formerly HeirsHoldings Oil & Gas Limited) is Africa’s leading indigenous-owned integrated energy company, committed to meeting Africa’s unique energy needs while aligning with global sustainability goals.  Having a strong focus on innovation, environmental responsibility, and community development, Heirs Energies leads in the evolving energy landscape and contribute to a more prosperous Africa.

Full Speech of MD/CEO, Heirs Energies, Osa Igiehon at the 20th Anniversary/Induction Celebration of IPES, University of Port Harcourt

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The Petroleum Industry in the Next 20 Years: Energy Transition and Security

Please permit me to stand on all existing protocols.

First, I want to thank the IPES for the opportunity to share my thoughts on this very pertinent subject, with your distinguished faculty, today’s graduands and their families, industry colleagues, and others here present at this induction ceremony and 20th anniversary celebration of the Institute of Petroleum and Energy Studies (IPES).

I give my warm congratulations to the Institute on attaining the remarkable milestone of your 20th anniversary. As I reflect on the Institute’s achievements over the past two decades, the impact of IPES on the Nigeria petroleum industry is clear, as well as the impact on the lives of those it has touched. Your contributions have helped shape the landscape of petroleum education, research, and capacity development. Hence, I look forward to the next 20 years of impactful contributions to our industry, our country and the world.

Today, we are here to unravel the complex narrative of the future of the petroleum industry and its critical role in the global energy matrix.

In my discourse, I will be talking about the intricate dance between energy demand and supply, energy transition, the key drivers and trends that will likely dominate the energy landscape of the next 20 years and beyond, what our imperatives should be from a Nigerian/ Sub-Sahara African (SSA) perspective in order to have a more robust energy system, and some of the attributes that will be seen in future industry leaders.

The Role of Petroleum in the Global Energy System

The global energy system has evolved over the past few centuries, with coal forming the bed rock of primary energy supply and transiting to a system that is dominated by petroleum.

With the discovery of petroleum in the 1850s, gas and petroleum products increasingly became the major source of global energy. Estimates from the 2023 Energy Institute Statistical Review indicate that for 2022, petroleum accounted for ca. 55% of global energy supply, followed by coal 27%, renewables 7%, hydro 7% and nuclear 4%.

Petroleum is the lifeblood of modern civilization. The transportation sector, consuming more than half of petroleum products, is the most visible testament to this fact. Roads, railways, air travel paths and waterways crisscrossing continents are the veins through which the lifeblood of commerce flows, fueled by petroleum.

Petrochemicals, comprising 17% of petroleum use in 2022, are less visible but equally vital, forming everything from plastics to chemicals and pharmaceuticals. Petroleum is found in items as diverse as footballs, bicycles, tires, electronics etc. In our homes, we are surrounded by and depend on products that contain petroleum – housepaint, trash bags, roofing, shoes, telephones, hair curlers, clothes and even crayons contain refined petroleum.

Historical and Future Energy Demand

Petroleum has catalyzed revolutions, built economies, and defined geopolitical landscapes. It is woven into our everyday life even though in the past decade, there has been increasing calls for a transition of the global energy system away from fossil sources (petroleum and coal) to non-fossil sources.

Projections into 2050 spotlight a growing energy demand and an evolving energy mix. Future global energy demand is projected to grow by approximately 30% over the next 30 years. The growth in energy demand will be driven primarily by population growth, (currently 8bln, projected to grow to 10bln by 2050), urbanisation (currently at 56%, projected to grow to 70% by 2050), improvement in energy access (49% of SSA currently has no access to electricity) and economic growth. Nigeria, as you all recognise, typifies all these factors.

Given the realities of global energy demand – on one hand, considering the available fossil energy supply sources and infrastructure; and on the other hand, considering the nascency of the non-fossil energy sources, related complexities, capital requirement and technological innovation needed to build up this capacity; it is clear that petroleum will remain a key source of energy for the world for decades to come. Additionally, the non-fossil energy sources, comprising renewables and others, will also grow rapidly to meet this increasing global energy requirement.

So, the emerging energy system will not be fossil or non-fossil, it will be fossil and non-fossil, in a manner that carbon emissions are reduced, eliminated and/or captured.

Energy Transition – Osa’s Treatise

Energy Transition is a subject immersed in a lot of complexities, so I will try and deconstruct the subject in layman terms, in what I have called my treatise on the subject.

Foundationally, we need to ask the question “what is the core proposition of the energy transition that is being discussed today?”. To address this question, we need to consider a few key underpinning perspectives.

Let’s start with the proposition that there is always a transition in any human endeavor, driven by discovery, technology, innovation, availability and other factors. Such is the case with our energy system, it has and will evolve over time. However, what is termed today as “energy transition” is an agenda to accelerate the energy transition from fossil energy sources to non-fossil energy sources. The rationale for this acceleration, as very visibly cited by its proponents, is that the release of carbon into the atmosphere is causing climate change, that would endanger the earth in the future. And this agenda has targeted petroleum as the main source of carbon emissions and hence posits that the acceleration from petroleum as a dominant energy source, must happen quickly. This is one viewpoint. However, what is hardly mentioned, is that this viewpoint is also driven significantly by geopolitics and regional energy security considerations.

There is a second and alternate viewpoint, that states that the issue is carbon emissions and not petroleum, so to deal with the climate change debacle, the world should focus on all sources of carbon release, not just petroleum. It would interest you to know that agriculture (cattle) is another material source of carbon emission, but the proponents of the accelerated energy transition from petroleum are conveniently quiet on this. So, this second viewpoint posits that we need to focus on reducing and ultimately eliminating carbon emissions, and additionally sequestrating carbon from the atmosphere as may be required.

This subject, as many who followed the recent UN climate change Conference of Parties in Dubai (COP28) will know, formed the nexus

of the disagreement around the conference communique that ended with the focus being on carbon emissions, and not a phasing out of  petroleum as an energy source. This was a most important development that will shape and reshape this subject in the coming years.

With this foundation, we can then coalesce some of the key tenets of the energy transition, as follows:

It is anticipated that in the future energy system, our primary source of energy will mostly be from renewables (displacing petroleum) and that our primary form of energy consumption will be electricity (displacing petroleum distillates).

The simplest illustration of this is motorized mobility, where petrol and diesel are the predominant fuels used by cars today and in the future, it will be electricity that will be the dominant “fuel”.

Given all these considerations and a lot more for which time will not permit me to expatiate on, with respect to energy transition, I posit strongly that the whole world will not be on a single energy transition journey, but that different parts of the world will have different journeys, as they have different start-points and will likely have different pathways. And it is possible that they may end at different destinations in time.

Energy Imperatives for Sub-Saharan Africa and Nigeria

Our energy scorecard is very stark! ….. between 40 – 70% of our population do not have access to energy. Also, it is important to highlight a fact that is not widely talked about, that Africa contributes only 4% of total global emissions. Further, it is well known that SSA has the lowest energy use per capita in the world, and there is the clear linkage between energy use and economic development. This is our start-point.

Accordingly, for SSA and Nigeria, our top priority must be energy sufficiency. We are rich in all sources of energy – both fossil and non-fossil, and we must harness all these sources to address the energy deficiency in the region.

So, we can see clearly, that from all perspectives – global, regional and country, petroleum is going to remain a key component of the energy system for decades to come.

Nigeria Energy Landscape – An Unfolding Vortex

Over the next 20 years, several key factors will shape our country’s energy system. These include:

  • Global energy transition dynamics and how SSA and Nigeria play in that space. There is a growing positioning from Africa for a just and equitable energy transition for developing countries. This will have an imprint on how the journeys and destinations will evolve globally and locally.
  • Access to capital is going to be a key driver, given that global capital is currently discriminating against petroleum.
  • Gas is going to be key. This is against the backdrop of the global consideration of gas as a “transition” fuel, as well the unfolding geopolitical realities in Europe that sees Western European countries looking to diversify gas supply from Russia. I foresee that as a country we will be faced with the choice of getting the right balance between export vs in-country use of our gas.
  • For oil, focus will mainly be on growing production, and less focus on reserves growth, as the country will push to accelerate oil production ahead of the “global’ energy transition curve. Closely related to this and the access of capital challenge for oil, low-cost brownfield technologies, approaches and capabilities will also become premium.
  • The indigenization of the upstream industry is well underway. By the end of the decade, majority of Nigeria’s petroleum production will be operated by Nigeria independent companies.
  • Enabled by Petroleum Industry Act and market demand, there will be significant growth in the midstream sector for both liquids and gas processing capacities, as well as the product transport infrastructure and systems.
  • And last but not least, I believe that there is going to be a tremendous growth in renewables, particularly solar. This is going to be a gamechanger. The industry is still nascent, challenged and products are expensive, but this industry will gain significant momentum as technology and innovation makes products more accessible to Nigerians and the world at large.

Winning Attributes of the Future

As you can well imagine, the leaders and professionals in the unfolding and future energy system in Nigeria will need to be multifaceted. I believe winners will need to be more value driven, as well as think energy rather than just thinking petroleum as was the case with my generation.

Winners will be skilled and not just educated; they will need to be entrepreneurial, dynamic, innovative and resilient, as the waves of change and complex interactions of the shaping factors will require leaders and professionals with these attributes.

I hope I have been able to share with you today, that the world is more inextricably linked, and that there will be an ongoing interplay between what is happening globally, regionally and locally. So, the energy industry champions of tomorrow will need to have both a global mindset and a solid local anchoring.

So, for the graduands of the IPES joining the energy industry, please know that the industry is not in sunset, but it is the dawn of a new day and there are many new dawns of many new days to come. You will likely see more landscape changes in your career than my generation saw in ours.

Heirs Energies and its contribution to the Nigerian Petroleum Industry

Heirs Energies acquired OML 17 in January 2021. We took over operational control in July 2021. In 100 days, we doubled oil production from 27,000bopd to 52,000bopd, and subsequently, we have also grown our gas production from 50mmscf to a peak of 100mmscf. I am always proud to highlight that all our gas goes into the eastern domestic network enabling power production, and providing feed gas for Gas Based Industries, thereby directly enabling meaningful livelihoods in the eastern part of our country.

We are committed to meeting the future energy needs of Africa, starting with Nigeria, and strongly practice the Africapitalism mantra espoused by our Chairman, Mr. Tony Elumelu, which is to “do well (commercially) and also do good (socially)”.

Conclusion

In conclusion, I want to thank IPES for the opportunity to share these thoughts today.

I look forward to seeing many of our graduands becoming champions of the energy industry in the future. I am confident that with the investment in an IPES education, the foundation for future success has been made.

So, go out there and conquer!

Thank you.

Heirs Energies honoured for Sustainable Operations at NBLA 2023

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Heirs Energies, an indigenous-owned integrated energy company has marked another milestone by securing the esteemed “Excellence in Sustainable Energy Operations” award at the 2023 Nigerian Business Leadership Awards (NBLA) organised by BusinessDay Media.

This accolade reaffirms Heirs Energies’ strategy towards meeting Africa’s unique energy needs in a sustainable manner.

The Nigerian Business Leadership Awards (NBLA) honours outstanding achievements across various sectors, acknowledging innovation, impact, and sustainable practices among companies nationwide. Heirs Energies emerged a clear leader in the sectoral awards category for its exemplary contributions to sustainable energy operations, a testament to its dedication to revolutionising the energy landscape.

Chief Executive Officer of Heirs Energies, Osayande Igiehon, expressed gratitude for the recognition, stating, “This award is a testament to our team’s relentless dedication and validates our commitment to a shared destiny with the local communities in which we operate. At Heirs Energies, sustainability is not just a goal but our guiding principle driving every one of our initiatives.”

Heirs Energies prioritises transparency, ethics, and corporate social responsibility, ensuring its operations deliver on its sustainability objectives. By empowering communities, mitigating environmental impact, and driving socio-economic development, Heirs Energies continues to demonstrate the capacity to deliver sustainable energy solutions while leveraging emerging technologies.

About Heirs Energies Limited

Heirs Energies Limited (Formerly known as HeirsHoldings Oil & Gas Limited) is an indigenous-owned integrated energy company, committed to meeting Africa’s unique energy needs while aligning with global sustainability goals in achieving net zero by 2050. Having a strong focus on innovation, environmental responsibility, and community development, Heirs Energies leads in the evolving energy landscape and contribute to a more prosperous Africa.

Heirs Holdings’ Oil & Gas Becomes Heirs Energies

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  • Brand Positioning Demonstrates Heirs Holdings’ Integrated Energy Strategy

LAGOS – October 18, 2023 – HeirsHoldings Oil & Gas Limited (HHOG), Africa’s largest indigenous-owned integrated energy company, has announced a major rebranding, changing name to Heirs Energies Limited and with a refreshed logo colour scheme, reinforcing the strategy of meeting Africa’s unique energy needs in a sustainable manner.

With the urgency of achieving net zero emissions by 2050, Heirs Energies will utilise its extensive expertise, resources, and innovation to lead in transforming the energy landscape, while creating a lasting, positive impact on the environment.

Heirs Energies will continue its exploration and production, while leveraging on emerging technologies to cut carbon emissions by eliminating gas flaring, as well as investing in gas utilisation projects to harness the abundant energy sources for improved energy access, that will drive development on the continent.

Tony O. Elumelu, CFR, Chairman of Heirs Energies, commented: “This new brand identity reiterates our passion for innovation, growth, and sustainability in Africa. Heirs Energies signifies our unwavering commitment to environmental responsibility, value creation in Africa, integration across our value chains, while working together with our community towards a shared destiny. We are excited to embark on this transformative journey, that will shape the future of the energy sector in Africa.”

Commenting, the Chief Executive Officer of Heirs Energies, Osayande Igiehon said, “Heirs Energies embodies our unique intention and approach to the energy sector. Our focus is not only on meeting Africa’s unique energy needs, but also doing so in a sustainable and responsible manner, that aligns with global environmental goals.”

Heirs Energies prioritises transparency, ethics, and corporate social responsibility, ensuring its operations deliver on its sustainability objectives. In doing so, the company demonstrates Heirs Holdings founding philosophy of Africapitalism, ensuring the private sector drives African development, responsibly delivering economic and social transformation.

About Heirs Energies Limited

Heirs Energies Limited (Formerly known as HeirsHoldings Oil & Gas Limited) is Africa’s largest indigenous-owned integrated energy company, committed to meeting Africa’s unique energy needs while aligning with global sustainability goals in achieving net zero by 2050. Having a strong focus on innovation, environmental responsibility, and community development, Heirs Energies leads in the evolving energy landscape and contribute to a more prosperous Africa.

Samuel Nwanze ED/CFO of Heirs Oil & Gas Highlights the Importance of FDI in Developing Africa’s Natural Gas Reserves at SPE NAICE 2023

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Samuel Nwanze, the Executive Director/Chief Finance Officer of Heirs Oil & Gas, took the stage as a representative of Tony O. Elumelu, CFR, Chairman, Heirs Oil & Gas at the Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) 2023. During a panel session themed “Role of FDI (Foreign Direct Investments) in the efficient development of natural gas reserves to meet Africa’s energy security demands,” Samuel discussed the critical role of Foreign Direct Investments in driving the continent’s energy future.

Speaking to the gathering of industry experts and delegates, he emphasised the necessity of carefully structured project deals. He stressed that aligning the interests of project owners and investors is pivotal in maximising the benefits of FDI (Foreign Direct Investments) for the development of Africa’s natural gas resources.

“A lot of work has to be done in terms of how we structure project deals. The structuring of projects should allow getting the FDI in such a way that it meets the project owner’s objective as well as that of the investor,” he stated.

Furthermore, Samuel highlighted the importance of indigenous players demonstrating a track record and showing credibility in capital deployment to attract foreign investments. He stated, “For firms to attract these foreign investments, indigenous players need to demonstrate some track record and credibility in capital deployment where they have been able to yield returns.”

The panel session at NAICE 2023 provided a platform for industry leaders like Samuel Nwanze to share their expertise and vision for Africa’s energy landscape. As the continent continues to grapple with energy security challenges, discussions on leveraging FDI and fostering mutually beneficial partnerships are pivotal for the sustainable growth and prosperity of the region.

Chairman, HHOG, Tony O. Elumelu CFR, speaks on Local Capacity Development at the 2023 AVAR

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Yesterday, the Chairman of HeirsHoldings Oil & Gas Limited, Tony O. Elumelu CFR, attended the 2023 Annual Value Assurance Review organised by the NNPC Upstream Investments Management Services (NUIMS) held in Lagos. The forum focuses on reviewing key issues that shape the Nigerian oil and gas industry, with a focus on delivering long-term value to all stakeholders in the industry.

During the event, he delivered a speech on the “Critical Role of The Private Sector in the Development of Local Capacity for the Nigerian Oil & Gas Industry”. He emphasised the need for collaboration between the private sector and the government to create an enabling environment that would attract investments and promote the growth of the industry.

Mr. Elumelu emphasised the need for deliberate development and enhancement of local capacities. He said, “We know the current contribution of oil and gas to Nigeria’s economy today. However, I believe this can be improved upon by deliberate development and enhancement of local capacities at all streams of the hydrocarbon value chain.”

He further expressed his readiness to contribute towards developing local capacities and driving investment in the sector within an enabling environment. “I can attest that we are ready to contribute towards developing local capacities and driving investment in the sector once the right enabling environment for Nigerian businesses is provided.”

“Governance is extremely important in the development of capacity. The Petroleum Industry Act (PIA) objective is to ensure that the indigenous private sector succeeds. There must be clear governance structures that institutionalise monitoring, feedback, and accountability of operators in the oil and gas sector.” He added.

Finally, He highlighted the importance of technology in building local capacity in the oil and gas sector. “Technology is key. We are in the 4th industrial revolution, advances in Data analytics, and Artificial Intelligence is revolutionising industries across the world, and we must adopt them in our industry to build local capacity in the oil and gas sector.”

In conclusion, Mr. Elumelu’s attendance and contribution to the event highlight his commitment to the development of the Nigerian economy and the role of the private sector in achieving sustainable growth. His insights on the importance of private sector involvement in developing local capacity provide a roadmap for stakeholders to collaborate and drive long-term value in the sector.

Keynote speech at the Launch of APWEN SheEngineer 30% Club by MD/CEO, Osayande Igiehon: “Integration and implementation of gender-sensitive policies in the workplace”

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  • Keynote Speech delivered by MD/CEO, Heirs Oil & Gas, Osayande Igiehon  at the Launch of the SheEngineer 30% club by the Association of Professional Women Engineers in Nigeria (APWEN)

I am honoured to be invited by APWEN to speak on the topic – “Integration and Implementation of Gender-Sensitive Policies in the Workplace”

Gender inclusion is a topic of great importance; it has become clear that its not just  a moral imperative, it is, also a key factor for achieving sustainable development.

On a personal level, I must say that I have had the pleasure of working and collaborating with women and women engineers in particular, as seniors, colleagues and mentees over the years. From a vantage position, I have witnessed numerous instances of unparalleled excellence, outstanding achievement and game changing leadership being demonstrated by women.

That is why I gladly accepted the invitation when offered and I do sincerely hope that the insights and perspectives on the topic of today’s event will further trigger the needed response in us as individuals and our various organisations to be promoters and catalysts for the needed change.

So, what is Gender Inclusion and what is it not?

A simple question, but very weighty, given that the actions and reactions to the term and principles of gender equality, stems from the understanding and/or misunderstanding of what it is and what it aims to achieve.

Classically, gender inclusion is about being deliberate to ensure that everyone, regardless of gender, has equal access to resources, opportunities, and benefits.

There is however a lot of misconception about what gender inclusion means – some believe, wrongly I must say, that it’s about female entitlement. I think it’s much broader than this, I think it’s more about giving the same opportunity, latitude, support and recognition to females, as any man would want to be given. Colloquially, it’s epitomised by the adage “treat others as you would want to be treated”, where in this case, it’s “treat women the way you want to be treated’.

From a private sector perspective, is there really a Business Case for Gender Inclusion?

There are several studies, examples and business leaders reflections that have demonstrated a strong business case for gender inclusion with win-win possibilities for all parties involved.

One of these studies, a 2021 study by Mckinsey, found that equal involvement of women in the workplace contributes to meaningful returns on investment and is associated with Organizational Performance and Profitability.

  1. The study also established with empirical evidence that companies with strong gender inclusion have improved employee satisfaction and reduced employee turnover and absenteeism.
  2. The study further established that such companies with strong gender inclusion also have enhanced Organisational Reputation and Ability to Attract Talent and Retain Employees.
  3. The study also affirms that systemic exclusion of women from the workforce leads to inefficient economies, unequal growth, and missed opportunities for development at industry, national and global levels.

With the plethora of consistent feedback that continues to solidify and amplify the business value add from gender inclusion, it’s is no surprise that this is now a significant momentum for this objective globally, across various strata of society and across various sectors of endeavour.

In the business world, several companies have either adopted gender-sensitive corporate policies, which is essentially the entry point, or advanced in this journey to the point of integrating gender inclusion into their overall business strategy.

What are the top-line policy considerations for gender sensitivity?

To be impactful as an organisation in gender sensitivity and equality, policy must cover and specifically address the issues relating to the the natural and social experience of women and girls, with an overall view to enhance the chance of potential attainment for females. Maturity in this journey would see standalone policies, but policies that are integrated into HR processes and the company’s Code of Business Conduct.

The key thrust of these policies would aim to:

  • To definitively attract, recruit, retain, mentor, coach, sponsor and promote female staff and talent.
  • Provide sufficient time for maternity leave to help women recover physically and mentally from pregnancy and childbirth, while also adjusting to a “new normal”, before returning to their jobs
  • Policies that protect female staff well-being and mental health.

How are we doing it at HeirsHoldings Oil & Gas (HHOG)?

The Heirs Holdings Group to which HHOG belongs, has a strong reputation in gender inclusivity.  We have over 45% of female representation at the Group Leadership level.

In HHOG, despite operating in a male-dominated industry, we have a 40% female representation in leadership, and we see an appreciable representation of females across all cadres of the company, both technical and non-technical cadres – in both office and field-based positions.

In the engineering space in Nigeria, gender diversity has been a long-standing challenge, with women being underrepresented in this field. I recall my electrical engineering class of 1992 at University of Benin, where we had only one female in a cohort of ca. 30.

30 years later, the demography has improved definitively and is still improving, with more females studying STEM (Science, Technology, Engineering & Mathematics) courses and Engineering in particular. At HHOG, we are quite pleased that at our first graduate intake of 2022, we achieved a 50% female representation in technical disciplines.

In HH group and HHOG, we recognise that having a diverse workforce leads to better decision-making, increased innovation, and improved financial performance. Therefore, we know it’s in our best interest to create a workplace that is welcoming to everyone, regardless of gender. To achieve this goal, we have developed and implemented several gender-sensitive policies in our workplace. These policies include:

  • Gender-Neutral Hiring Practices: Our recruitment process is designed to ensure that we hire the best candidates, irrespective of gender. This includes the use of gender-neutral language in job postings.
  • Gender Pay Equity: We believe in paying our employees based on their skills, experience, and performance, regardless of their gender.
  • Family-Friendly Policies: We understand that employees of both genders have personal lives and responsibilities outside of work and have policies in place to support this. Examples include our Parental Leave (applicable to mothers and fathers).

These policies are just a few examples of the steps we have taken to promote gender diversity and inclusion in our workplace. While we recognize that there is still more work to be done, we are committed to creating a workplace where everyone, especially our female colleagues, feel valued, respected, and empowered to succeed.

At HHOG, ours is a journey of continuous improvement, policies are the bedrock, but culture and leadership are the real determinants of success. The right behaviour and culture needs to be championed by leaders at all levels to ensure adequate traction is gained and desired outcomes achieved.

Everyone has a role in this and its starts with us as individuals:

Companies and policies don’t make themselves, they are made by humans; hence there is a need to work on ourselves, especially those in positions of leadership, to set the necessary foundation and context to believe in gender inclusion, and with this belief, the needed actions to ensure this principle is established across all strata of life and sectors of human endeavour will crystallise.

Accordingly, every one of us, especially if one is a leader, need to educate ourselves on the subject, need to become our “sister’s keeper” not just in words but in behaviours and in deeds, need to build ourselves to become allies for gender inclusion and lead by example on this subject.

In conclusion:

I thank APWEN for affording us all a great avenue to dialogue and become more educated on this change journey of gender inclusion.

As HHOG, as CEO of HHOG, and a key player in the Nigerian oil and gas industry, we will continue to champion gender inclusion, especially in the technical fields, stemming from benefits derivable and not just to achieve industry or societal correctness.

On a personal level, I would like to enjoin us all, to do more to promote gender inclusion and gender sensitive policies in the workplace. In our lifetime this “movement” can be the covert legacy we leave for our children, creating a world where everyone has an equal opportunity to succeed.

Thank you for listening.

Osayande Igiehon

Osayande Igiehon at the 2022 APWEN Conference : Just Energy Transition; An Enabler for Sustainable Development in Nigeria.

By Latest news
  • Speech delivered by MD/CEO, Heirs Oil & Gas, Osayande Igiehon  at the 2022 Association of Professional Women Engineers in Nigeria (APWEN) Conference 

Introduction

Thank you for this opportunity to share with distinguished colleagues, friends, sisters, APWEN and the rest of us who are here to support them in this 2022 conference.

Please permit me to stand on all existing protocols and I will move on to the topical issue, “Just Energy Transition and how to make it enable the development of Nigeria”.

I find it to be a subject steeped in a lot of complexities, so I will try and deconstruct them so a layman in the street can understand what the energy Transition is about.

We will be talking about the following

  1. A Just Energy Transition: why it should be a just energy transition, the part that is not commonly said about it.
  2. The Nigerian energy transition plan
  3. What we think are the imperatives to ensure Nigeria can win.
  4. What Heirs Holding is doing within this space from a strategic point.

A Just Energy Transition

When we look at energy transition, there is the talk that you go from fossil fuels to renewables which is quite commendable, but we need to look at it on several different levels. Currently, we have an energy system that is carbon-intensive and by the second half of this decade, we should have an energy system that is carbon neutral or “no carbon at all”. The implication of “No Carbon” is “No Hydrocarbon” because hydrocarbon, as we know it today, is the base of the economy. So, in this energy transition conversation, we need to think about ourselves in the conversation.

The second thing to think about is the future today, most of the energy consumed is in the form of petroleum products. Whenever I am in my house, I am consuming power majorly from gas, when I drive my car, I buy petrol and use diesel in my generator. It is an energy system that is dominated by fossil fuels.

It is anticipated that in the second half of the decade we are building a system that will shift major energy consumption from electricity instead of petroleum, for example, fuelling cars will be done using electricity. This is the essential conversation about the energy transition.

Where we have a system that is dominated by electricity, we need to ask ourselves “What will be the source of the electricity?”. This is where the conversation becomes critical to move away completely from hydrocarbons to renewable sources.

Having said that and juxtaposing it with the realities of the world where the population is projected to go about 9 billion, the energy demand is only going to increase. Bringing it home to Nigeria and Africa, we talk about energy adequacy which numbers abound, but we do not know it enough. Some analyses have it at 80% and some 65% energy poverty… the bottom line is that a list of countries in Africa do not have enough energy, we are substantially short of energy which is the key piece to underpin the whole energy transition conversation.

When we talk about energy transition, we need to begin translating that conversation from a European perspective to an African perspective and bringing it closer home into a Nigerian perspective. Talking about the subject of a Just Energy Transition, the conversation is that we should have a transition that is fair, equitable and inclusive. A transition that creates opportunities across the world in a way that no one is left behind.

Most times in these conversations, Africa can be assumed to be a passenger and not in the driving seat. We do not understand it enough and need to take control of the narrative and chart our direction for ourselves. But what people are not talking about sufficiently is “What is the case for saying the energy transition has to be just?”. Having a just Transition is the fact that there needs to be a conversation addressing where we are and resolving the way forward and taking into consideration how we got to this point, the responsibilities and accountabilities for it, which is not sufficiently talked about.

When you look at it from any lens, whether historical, current, or per capita basis, over 70% of all the carbon has been from the developed world, i.e., the US, China, The EU, India, Russia and Japan. They contributed and are contributing to 70% of the carbon emissions that are linked to climate change today. Africa is about 3.4% of that and Nigeria is less than 0.5%. So, when having a conversation around energy transition and attempting to locate Nigeria and Africa in such a conversation, we need to think of it from the perspective of an African conversation and not a European conversation.

It is also further compounded because energy transition talks about moving away from fossil fuels taking into consideration a country such as Nigeria being a mono-product country where most of our economy is directly linked to oil and gas export. Therefore, when we talk about an energy transition in 30 years’ time where we want a carbon-free society, meaning “No Oil and Gas”, how are we going to engineer our country? We should be having conversations in that direction.

There is a direct correlation between the amount of energy consumed and economic advancement owing to the amount of carbon produced. If we do not take a decision from an African or Nigerian perspective in the articulation of the transition journey, we will be further disadvantaged as we move forward. It will not just become an enabler; it can also become a disabler.

The Nigerian Energy Transition Plan

Talking about the Nigerian energy transition plan, the country as has indeed taken pivotal steps to take the lead and provide leadership in sub-Saharan Africa around energy transition. The transition plan can be demonstrated in 5 points.

  1. To demonstrate Nigeria’s commitment to energy transition and net zero by 2060.
  2. Nigeria taking a leadership role in enabling a just and equitable climate future for Africa.
  3. Mobilize finance to jump-start the implementation of the plan.
  4. It is focused on gas as a transition fuel and solar as the main pivot of the energy transition and renewable source.
  5. The result it aims to achieve is ending energy poverty, lifting a million people out of financial poverty and creating a modern energy service system for Nigeria

Imperatives to ensure Nigeria can win

These are very important directions, objectives and results to be achieved. However, we think there needs to be more. The imperatives are:

  1. For it to be a Nigerian Plan, we need to be talking about a Nigerian energy sufficiency and transition plan. The transition should be an enabler to address the sufficiency. Transition is a European imperative, while sufficiency should be an African imperative.
  2. For sufficiency, we need to take the lead and invest in a plan that provides 100% for our people and energy sufficiency in a multipronged sufficiency plan. It should take into consideration, traditional energy sources, renewables and or new energies.

There are a lot of conversations that we can leap-frog the current and traditional energy system to a renewable system, citing mobile phone advancement as an example. But looking at the terrain and complexities. It is different and the capital involved to make that transition is significant. There is going to be a choice of pushing for either sufficiency or transition.

The thinking is that we use our resources to push for sufficiency bringing us to the next imperative that we need to attract the resources to make the transition work. If we must be part of the solution, we must be enabled to take a role in the solution.

There are a lot of discussions around technology transfer and Africans need to come to terms with the fact that there is nothing like technology transfer. No one will transfer a competitive advantage; we have to talk about technological acquisition. We need to find a way to get the technology in, which is the key role for us as engineers to find ways and means with leadership and policy direction from government and the inventiveness and creativity of our engineers to find a way around the technology to help in the journey.

What Heirs Holdings is doing from a Strategic Point

In Heirs Oil & Gas, we are part of a larger group; Heirs Holdings, with Mr. Tony Elumelu as Chairman, whose concept of Africapitalism essentially talks about a double bottom line of having commercial success and making sure we are making a social impact. He talks about doing well and doing good. In this, the Tony Elumelu Foundation is enabling our youths in a big way in the space of entrepreneurship.

Within Heirs Holdings we have an integrated energy strategy that possesses 3 arms:

  1. Oil & Gas
  2. Electricity
  3. New Energies/Renewables

In oil and gas, we acquired OML 17, which is the flagship asset of HHOG in January 2021. We took over operational control in July 2021. In 100 days, we ramped up production from 27,000 to 52,000 and in 8 months, we more than doubled gas production from 50mmscf to 120mmscf. It is interesting to note that all our gas produced goes into the eastern domestic network.

On the leadership team, 40% of us are women. On electricity under Transcorp, we operate 15% of the installed electricity generation capacity in Nigeria, running the plants in Ughelli and Afam, it may interest you to know that the Transcorp business is led by a woman. With this, you can tell that Heirs Holdings is a female-centric organisation.

We are charting our way forward in terms of new energies; I was privileged to join our Chairman in a conversation with Senator John Kerry, the US envoy for Climate last week. We had a similar conversation, so it was quite apt when I reflected on the theme of this conference, and I think the organisers are right on the subject that is key today. We espoused our position to him, and there is an up head that in Africa, we need to lift people out of poverty with energy sufficiency and the transition is an enabler, therefore it should not be one or the other.

Conclusion

I want to thank APWEN for the opportunity to share these thoughts today.

The energy transition is just and enabling is not what others will do for us, we have to do it for ourselves.

Thank you.

Heirs Oil & Gas Reiterates Commitment to Global ESG Best Practices

By Latest news, Press-release
  • Doubles gas production capacity of OML 17 while upholding ESG commitments

Lagos, 24/05/2022 – Heirs Oil & Gas, Africa’s integrated energy company has reaffirmed its commitment to both national and global environmental, sustainability and governance (ESG) best practices in view of its upcoming operational 1-year anniversary. An important aspect of this commitment is the elimination of routine flaring from HHOGs OML 17 by 2025, in compliance with the Nigerian Government’s routine Flare Reduction/Elimination goal and global greenhouse gas reduction initiatives.

The CEO, of Heirs Oil & Gas, Osa Igiehon, in a comment, laid out the steps being taken by the organisation to ensure the implementation of the plans to meet the commitment.

“Decades of underinvestment in the asset cannot be corrected in a few months, since taking over the asset, we have been working arduously on this objective with the execution of flare reduction projects such as follows: AGG (Associated Gas Gathering) compressor uptime improvement, Facility upgrades, provision of gas gathering solutions and Facility off-gas utilisation initiatives,” he stated.

In line with the set objectives, since the acquisition, HHOG has more than doubled the gas production capacity of OML-17 from 50 to 120 mmscfd within the short period we have operated this asset. All this gas goes into the eastern Nigeria domestic gas market to enhance power generation and create the much-needed feedstock for gas-based industries, sustaining & creating jobs and improving lives.

On the social front, HHOG continues to make meaningful contributions towards improving the livelihoods of Africans. We believe that understanding and addressing the interests of our host communities is critical for achieving success in our operations. We continuously seek opportunities to create a positive impact through community infrastructure development and empowerment initiatives.

As a leading indigenous operator, HHOG remains committed to making a positive impact in Nigeria, Africa, and the world at large.

About Heirs Oil & Gas

Heirs Oil & Gas is a leading African, indigenous owned, integrated energy company, headquartered in Nigeria, whose assets include Nigerian oil block OML 17, with a current production capacity of over 30,000 barrels of oil equivalent per day and 2P reserves of 1.2 billion barrels of oil equivalent, with an additional 1 billion barrels of oil equivalent resources of further exploration potential.

Heirs Oil & Gas (HHOG) is jointly owned by Heirs Holdings, the leading African strategic investor and affiliate company Transnational Corporation Plc (Transcorp), Nigeria’s largest publicly listed conglomerate.