The Chief Executive Officer (CEO) of Heirs Energies Limited, Osa Igiehon, has disclosed that Nigeria has the capacity to produce between 2 million and 2.5 million barrels of oil per day (bpd). However, he highlighted that theft is significantly stifling investments in the industry.
Heirs Energies Limited operates the Oil Mining Lease (OML) 17. In an interview with the Financial Times, featured in a film titled “Nigeria’s Struggle to Break the Oil Curse,” Igiehon revealed that the energy transition has made it more challenging for operators to secure credit facilities for oil and gas operations.
“Today, we are only able to produce somewhere in the range of 1.2 million bpd to 1.5 million bpd,” he said.
According to Igiehon, several issues, including the energy transition and a lack of investments, are contributing to the decline in oil production. He also discussed his firm’s substantial contributions to Nigeria’s energy sector, which include managing approximately 5% of the country’s oil production and a similar share of its domestic gas production.
He argued that these contributions are particularly important given the recent trend of international oil companies exiting onshore operations in the country, which, in turn, is creating opportunities for capable indigenous firms to fill the void.
Igiehon further revealed that within just three years of acquiring the OML-17 block, Heirs Energies has demonstrated remarkable operational excellence.
“Within just 100 days of taking over operations, the company doubled its oil production from 27,000 to 52,000 barrels per day. This rapid improvement serves as compelling evidence of the capacity and resilience of indigenous companies in the sector,” he said.
“There are causative factors, but the biggest is theft. The second challenge is the lack of investment,” he added.
“Because of the theft, there has been a stifling of investments in the sector. We noticed very quickly that while we were trying to ramp up production, what was getting to the terminal was declining. In December 2021, we only got 3 per cent of our production at the terminal.”
He noted that the company currently gets an average of 85% of its production to the terminal and appreciated the government for the decisive steps taken to secure pipelines.
Addressing the challenges faced during the transition period, particularly the issue of oil theft in the Niger Delta region, Igiehon stated that through strategic initiatives and collaboration with key stakeholders, Heirs Energies has made significant strides in overcoming these obstacles. For instance, the company has increased its terminal delivery from 3% in December 2021 to 85% currently.
Igiehon emphasised that the success of Heirs Energies aligns with the principles of Africapitalism, which positions the private sector at the forefront of investments that drive both economic prosperity and social progress.
“The feature in the Financial Times not only highlights Heirs Energies’ achievements but also underscores the company’s commitment to driving Nigeria’s economic growth, ensuring energy security, and paving the way for a new era in the country’s energy sector—one driven by local expertise, innovation, and a deep understanding of Nigeria’s unique challenges and opportunities,” he said.
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