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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.

Heirs Oil & Gas Reiterates Commitment to Global ESG Best Practices

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  • 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.

Heirs Oil & Gas’ OML 17 wins PFI Africa Deal of the Year

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  • HHOGs OML 17 deal awarded 2021 Project Finance International (PFI) Africa deal of the year

Lagos, 11/05/2022 Heirs Oil & Gas (HHOG), Africa’s integrated energy company has been awarded the ‘Africa deal of the year 2021’ by Project Finance International (PFI), following its $1.1 billion financing and acquisition of 45% stake in OML 17 in 2021. The award ceremony which took place on Monday, May 9 in London was a gathering of senior industry leaders to celebrate excellence.

“On behalf of the HHOG team, I would like to thank PFI for this great honour which recognises the OML 17 acquisition deal, while also acknowledging the efforts of the entire team involved in the transaction.” said the Executive Director, Heirs Oil & Gas, Samuel Nwanze.

The deal, which was announced in January 2021, saw Heirs Holdings, the leading African strategic investor, in partnership with affiliated company Transnational Corporation (Transcorp), acquire a 45% participating interest in Nigerian oil license OML 17 and related assets from the Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited, and ENI.

Chief Executive Officer, Heirs Oil & Gas, Osayande Igiehon said “This great recognition reiterates our commitment to excellence in our bid to fulfil Africa’s unique energy needs and ensure that Africa’s natural resources are directed toward value creation on the continent.”

The PFI awards is organised by Project Finance International (PFI) which a leading source in global project finance reporting, covering all the major sectors, including transport, power, oil & gas, infrastructure and mining.

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.

Heirs Oil & Gas Announces CEO and Board Appointments

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  • Welcomes Former Senior Shell Executive, Osayande Igiehon, as CEO

Lagos, 06/05/2021 Heirs Oil & Gas (HHOG), the leading African integrated energy company, has announced the appointment of Osayande Igiehon as Chief Executive Officer, effective May 4, 2021, together with a distinguished non-executive board, bringing together leading industry figures, with considerable global and regional experience.

Heirs Holdings Limited (HH) portfolio company, HHOG, completed the acquisition of OML17 in January 2021, in one of the largest oil and gas financings in Africa in more than a decade, with a financing component of US$1.1 billion. The transaction represents a further implementation of the HH Group strategy of creating the leading integrated energy business in Africa. Through a series of strategic portfolio holdings, HH is executing this strategy. Most recently, affiliate company, Transcorp made a US$300 million acquisition of Afam Power, increasing the Group installed electricity generating capacity to 2,000MW.

Mr. Igiehon, who joins from the Royal Dutch Shell (Shell), where he was previously a Vice-President with the Group in the Hague, Netherlands. He brings over twenty-seven years of experience and expertise in the oil and gas sector with Shell, where he held a series of senior management positions. Mr. Igiehon previously served as Chairman and Chief Executive Officer of Shell Gabon, where he led the successful turnaround of the operational, safety and financial performance.

HHOG is also pleased to announce the appointment of the following distinguished private sector and senior industry leaders to the Board:

  • Tony O. Elumelu, CON is the Chairman of Heirs Holdings, the United Bank for Africa (UBA), Transnational Corporation of Nigeria (Transcorp), and Founder of the Tony Elumelu Foundation.
  • Sally Udoma who previously served as general counsel for Chevron Europe, Eurasia, and the Middle East Exploration and Production. Previously, she was general counsel for Sasol Chevron Consulting Limited and managing counsel at the London Legal Service Centre for Chevron Global Upstream and Gas. She has also served as general counsel and general manager for Chevron Nigeria Limited.
  • Anil Dua is a founding partner at Gateway Partners Limited, a private equity fund specialising in dynamic growth markets including Africa, the Middle East and Asia. Prior to this, Mr. Dua worked for over thirty-five years with Standard Chartered Bank in Asia, Africa, Europe and the US, where he held various roles including Regional CEO West Africa and Regional Head of Origination and Client Coverage, Africa.
  • Ahmadu Kida Musa who previously served as Deputy Managing Director of Total Exploration and Production Nigeria Limited has over thirty-two years of experience in the Oil and Gas industry and brings considerable expertise in Nigerian oil and gas.
  • Stanley Lawson currently serves on the board of Transnational Corporation of Nigeria Plc. He is Managing Partner at Financial Advisory & Investment Consultants Ltd. Dr Lawson previously occupied the position of Group Executive Director-Finance & Accounts at Nigerian National Petroleum Corp.
  • Samuel Nwanze is the Chief Finance Officer at Heirs Oil and Gas. Prior to this he was the Chief Investment Officer at Heirs Holdings responsible for investment and capital management.

Commenting, Mr. Igiehon stated:

“HHOG represents an extraordinary opportunity, to create Africa’s first true integrated energy company, with a mission to ensure that Africa’s natural resources are directed toward value creation in Africa, powered by sustainable, robust and abundant African energy. I am excited to join the Heirs Oil and Gas leadership team and look forward to the opportunity to transform the energy sector, purposefully address Africa’s energy needs and improve the lives of people across Africa.”

The Chairman of the Board, Tony O. Elumelu, CON, stated: “I am delighted to welcome our new board members. We are building a role model institution for African businesses and our investment in human capital is a further strong demonstration of our intent. The regional and global expertise of our board members will serve to further drive value creation to our continent, as we execute our goal of becoming Africa’s largest, indigenous, integrated energy company.”

 

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 OML17, with a current production capacity of 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 of Nigeria Plc (Transcorp), Nigeria’s largest publicly listed conglomerate.

Pipelines-building

Heirs Holdings Significantly Expands Oil and Gas Portfolio

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Heirs Holdings Significantly Expands Oil and Gas Portfolio

  • Acquires 45% of OML 17 from Shell, Total and ENI
  • Existing Production Capacity of 27,000 barrels of oil equivalent per day Estimated 2P Reserves of 1.2 billion barrels of oil equivalent
  • Estimated Additional 1 billion barrels of oil equivalent of further exploration potential

Lagos, Nigeria, January 15, 2021 – Heirs Holdings (HH), the leading African strategic investor, in partnership with affiliated company Transnational Corporation of Nigeria Plc (Transcorp), Nigeria’s largest publicly listed conglomerate, announced today the unconditional acquisition of a 45% participating interest in Nigerian oil license OML 17 and related assets, through TNOG Oil and Gas Limited (a related company of Heirs Holdings and Transcorp), from the Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited, and ENI. In addition, TNOG Oil and Gas Limited will have sole operatorship of the asset

The transaction is one of the largest oil and gas financings in Africa in more than a decade, with a financing component of US$1.1 billion, provided by a consortium of global and regional banks and investors. OML 17 has a current production capacity of 27,000 barrels of oil equivalent per day and, according to our estimates, 2P reserves of 1.2 billion barrels of oil equivalent, with an additional 1 billion barrels of oil equivalent resources of further exploration potential.

The investment demonstrates a further important advance in the execution of Heirs Holdings’ integrated energy strategy and the Group’s commitment to Africa’s development, through long-term investments that create economic prosperity and social wealth. Heirs Holdings’ heritage and approach to business fundamentally underscores its commitment to inclusive development and shared prosperity with its host communities. Heirs Holdings is fully invested in the development of the Niger Delta region.

Heirs Holdings’ strategy of creating the leading integrated energy business in Africa is executed through a series of strategic portfolio holdings. Transcorp is one of the largest power producers in Nigeria, with 2,000 MW of installed capacity, through ownership of Transcorp Power Plant and the recent acquisition of Afam Power Plc and Afam Three Fast Power Limited. Transcorp closed the US$300 million Afam acquisitions in November 2020. Transcorp supplies electricity to the Republic of Benin, as part of an emphasis on promoting regional integration and delivering a robust power supply to catalyze development in Africa. Transcorp also operates OPL281, under a production sharing contract with the Nigerian National Petroleum Corporation (NNPC). Similarly, Heirs Holdings subsidiary, Tenoil is the operator of OPL 2008, under a production sharing contract with NNPC. Tenoil also owns the Ata Marginal Field, which will commence production in Q2, 2021, with 3,500 barrels of oil per day.

Chairman of Heirs Holdings, Tony Elumelu stated: “We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs. The acquisition of such a high-quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria, the Nigerian oil and gas sector, and a tribute to the extremely high-quality management team that we have assembled. As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities, and the strategic importance of the oil and gas sector in Nigeria. We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain.”

Speaking further, he said, “I would like to thank Shell, Total and ENI, for the professionalism of the process, the Federal Government of Nigeria, the Ministry of Petroleum Resources, and the NNPC for the confidence they have placed in us.”

Speaking on the investment, the President/GCEO of Transcorp, Owen Omogiafo, said “This deal further demonstrates Transcorp’s integrated energy strategy and our determination to power Africa.”

Heirs Holdings was advised by Standard Chartered Plc, as Global Coordinator, and United Capital Plc, with a syndicate of lending institutions including Afreximbank, ABSA, Africa Finance Corporation, Union Bank of Nigeria, Hybrid Capital, and global asset management firm Amundi. The deal also involves Schlumberger as a technical partner, as well as the trading arm of Shell as an off-taker.

Heirs Holdings has created one of Africa’s largest, indigenous owned, oil and gas businesses, headquartered in Lagos, Nigeria, and led by a board and management team with significant regional and global experience in production, exploration, and value creation in the resources sector. The HH Group is committed to the highest standards of safety, health, and community relations, together with best practices in governance and accountability.

About Heirs Holdings

Heirs Holdings is a leading pan-African investment company. Its investment portfolio spans the power, oil and gas, financial services, hospitality, real estate, and healthcare sectors, operating in twenty-three countries worldwide.

Heirs Holdings is inspired by Africapitalism, the belief that the private sector is the key enabler of economic and social wealth creation in Africa. Driven by this philosophy, Heirs Holdings invests for the long-term, bringing strategic capital, sector expertise, a track record of business success and operational excellence to companies we invest in.

Heirs Holdings is committed to improving lives and transforming Africa through its investment in the private sector and its philanthropic arm, The Tony Elumelu Foundation, which catalyzes entrepreneurship across Africa. Through the US$100m Tony Elumelu Foundation Entrepreneurship Programme, funded by Heirs Holdings, and its advocacy and research initiatives, the Tony Elumelu Foundation empowers thousands of African entrepreneurs, across all 54 African countries, eradicates poverty, and catalyzes job creation on the continent.