Heirs Energy Secures $750 Million Afreximbank Loan to Expand Oil Output
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Heirs Energy, a Nigerian oil and gas company controlled by banker Tony Elumelu, has obtained a $750 million loan facility from the African Export-Import Bank (Afreximbank) to finance the expansion of its upstream operations. The five-year, reserve-based facility, signed in Abuja on December 20, combines the refinancing of existing debt with additional capital to support higher oil and gas production.
The new financing follows several years of financial restructuring after Heirs Energy’s 2021 acquisition of the OML 17 oil mining lease from Shell, Total, and Eni for about $1.1 billion. The company has since repaid most of that borrowing, and the latest facility is intended to further improve its capital position and provide renewed capacity for investment.
Elumelu described the deal as a sign of growing confidence among African financial institutions in African-owned enterprises, crediting Afreximbank for its role in enabling large-scale investments by local firms. He said the financing marked a decisive step in Heirs Energy’s effort to build a resilient, continent-owned energy group capable of long-term growth.
Operationally, Heirs Energy currently produces more than 50,000 barrels of oil per day and about 120 million cubic meters of gas. Its medium-term target is to double crude production to roughly 100,000 barrels per day and increase gas output to around 250 million cubic meters. The company’s expansion plan centers on improving efficiency and commercializing associated gas rather than launching new drilling campaigns.
Afreximbank President George Elombi said the transaction aligns with the bank’s mandate to promote Africa’s energy security and macroeconomic stability. He noted that several other multibillion-dollar energy financing deals are being prepared, reaffirming the bank’s long-term commitment to supporting the sector through both favorable and difficult cycles.
The agreement underscores the growing role of Nigerian independent producers as global oil majors continue to divest from onshore and shallow-water assets. Heirs Energy joins peers such as Seplat and Renaissance Africa Energy in acquiring assets ceded by multinationals. According to Nigerian regulators, local companies now produce between 50% and 60% of the country’s crude output, up from about 40% a few years ago.
