Igiehon: Heirs Energies Poised to Replace IOCs With Investments in Oil & Gas

Kayode Tokede

The Chief Executive Officer, Heirs Energies Limited, Mr Osa Igiehon, has said that the company is committed to replacing International Oil Companies (IOCs) in the decade ahead, stressing that operating of OML 17 has given room to contribute to Nigeria’s gas production in the domestic market.

Speaking during an interview with the Financial Times, he disclosed that the company was operating about five per cent of Nigeria’s oil production that is currently in the range of 1.2 and 1.5 million oil per day.

“We are the operator of OML 17. We operate about five per cent of Nigeria’s oil production and roughly about five per cent of Nigeria’s gas production in the domestic market.

“Whilst we hear the global narrative of energy transition which talks about moving from predominantly one source to another source of energy, in Nigeria, there is a big transition also going on. It is not about sources but particularly on source with IOCs leaving and being replaced by indigenous oil companies.

“It is posited that by the end of the decade, most of the IOCs would no longer be active onshore and they will be indigenous oil companies.”

He said the group’s “Africapitalism” has positioned Heirs Energies as a leader in making investments to improve lives, making substantial prosperity and, at the same time creating social wealth.

“It talks about profits and impact,” he said.

He hinted that Nigeria as one of oil producers should be in the position to produce 2 to 2.5 million barrels per day, highlighting key challenges such as oil theft, poor state of investment and current energy transition in the sector.

Igiehon said, “Today, we are only able to produce somewhere in the range of 1.2 and 1.5 million per day. There are a number of causative factors. The biggest is the theft and the second challenge is the point of investment.

“Because of oil theft, it has created a scenario where there has been stifling of investment in the oil & gas sector. Thirdly, there is a global push for energy transition and this has made getting financing for oil & gas more challenging.”

He noted that the company took over operational control of OML 17 from the previous operator in July 2021, revealing that it doubled oil production in the 100 days from 27,000 to 52,000 barrels of oil per day.

“But we noticed very quickly that whilst we were trying to ramp up oil production, what was getting to the terminal was declining. In Dec 2021, we only get three per cent of our production to the terminal.

“Today, we now get an average of 85 per cent of our production. So, a lot of appreciation goes to the government for the decisive steps they have taken to secure the pipeline,” he said.

He said oil & gas had been a blessing to Nigeria and it could be a bigger blessing for the future because of “Our people, diversity, dynamism, resilience, capacity to confront challenges and surmount them.”