African Export-Import Bank (Afreximbank) and Heirs Energies Limited have signed a $750 million financing agreement to strengthen the energy firm’s capital structure and fund its field development programme in Nigeria.
According to a joint statement on Monday, the dual-tranche senior secured reserve-based lending facility, arranged by Afreximbank, will provide liquidity to support Heirs Energies’ growth strategy as it seeks to ramp up oil and gas production.
Afreximbank acted as mandated lead arranger, facility agent, and security agent for the deal.
“This partnership is a testament to Afreximbank’s commitment to value creation and empowering African entrepreneurs,” said Afreximbank President George Elombi at the signing ceremony in Abuja.
He added that the bank planned to channel significant capital into the proposed African Energy Bank (AEB).
On his part, Heirs Energies Chairman, Mr Tony Elumelu said the transaction underscored the role of African capital in financing the continent’s future.
“It reflects the successful journey Heirs Energies has taken – from turnaround to growth,” he said.
The deal builds on a 2021 transaction in which Heirs Energies, then Heirs Oil & Gas, acquired a 45 per cent stake in OML 17 for $1.1 billion, backed by Afreximbank and other lenders.
Since then, the company has doubled crude output to about 50,000 barrels per day and has become a leading gas supplier to Nigeria’s power sector.
Just last month, Heirs Energies and the Nigerian National Petroleum Company (NNPC) Limited and its partner, successfully doubled natural gas production at a key oil block, OML 17, as part of a broader strategy to boost domestic supply and ease the country’s electricity shortages.
The increase came from the OML 17 oil and gas field, operated by Heirs Energies in a joint venture with the Nigerian state oil company.
A rigless well intervention unlocked an additional 135 million standard cubic feet of gas per day (MMscf/d), enough to feed multiple power plants, directly contributing to an increase in electricity generation capacity by over 350MW.