From Crisis to Credibility: Heirs Energies’ Tale of Transformation (2021–2024)

In July 2021, Heirs Holdings, led by Tony Elumelu, a long established group of companies that had subsidiaries in banking, hospitality, and power, acquired a 45% operating stake in Oil Mining License (OML) 17, a mature onshore oil field in the Niger Delta region of Nigeria, originally operated by a consortium comprising Shell Nigeria, TotalEnergies, and Eni.

This was the first step to entering into Nigeria’s energy sector; a transaction that was valued at over $1 billion. However, the acquired asset was not immediately what it was expected. First, the terminal delivery had some problems.

The percentage of gross production that actually reached markets had cratered to just 3% by late 2021 because of constant theft of crude oil, pipeline vandalism, and sabotage across the Niger Delta region. Upon investigation it was discovered that about 97% of crude oil was being stolen at the time.

At the same time, local rumors did not help. Communities in Etche Local Government Area of Rivers State, which are hosts to OML 17 initially rejected the entry of “Heirs Oil & Gas”, accusing the firm of being Shell repackaged and as such did not welcome the idea because of alleged prior issues between the Etche people and Shell.

To kickstart the company, which was later rechristened Heirs Energies, and ensure its success, Osayande Igiehon, an accomplished energy executive, was appointed Managing Director and Chief Executive Officer (CEO).

Before joining Heirs Energies, Igiehon, a prominent figure in Nigeria’s energy sector with over 27 years of experience spanning various facets of the industry, had manned significant roles at Royal Dutch Shell, where he has been instrumental in driving growth and operational improvements including Vice President and Chairman/CEO of Shell Gabon, where he led a notable turnaround of the company.

Upon taking operational control, he instituted an immediate turnaround, and within 100 days, oil production doubled. It rose from 27–28,000 bpd to over 50,000 bpd and no new wells were drilled.

But this success did not solve every other problem that the company was experiencing because despite the fact that its output had increased, actual deliveries did not reflect this because crude theft persisted. According to Igiehon, only about 3% of production was reaching the terminal in December 2021.

The turning point was when Heirs Energies decided to strategically collaborate with Nigerian National Petroleum Company Limited (NNPCL), government, security agencies and host communities. This made securing pipelines a lot easier and also discouraged illicit tapping.

The company intensified community engagement and development programs, changing local attitudes and breaking down the criminal ecosystem fueling oil theft. By instituting incentives, upgrading infrastructure, empowering youths, and creating jobs, it was able to win the trust of the host communities.

By 2023, oil theft had reduced by more than 80%, ensuring that terminal receipts rise to around 15% of output. By 2024, average terminal delivery was at 85%. This restored a 100% recovery factor at the terminal, meaning most of the production reached the market.

Also at the end of 2024, production stabilized above 50,000 bpd, reaching about 51,000 bpd by late 2024 and close to 53,000 bpd by early 2025. Terminal delivery also skyrocketed from 3% to 85%, showing a recovery factor approaching 100% in Q4 2024.

The operation reported zero Lost-Time Injuries (LTIs) across 1.5 million man-hours, meaning that no life has been lost and staff critically injured since the company got into business and the asset generated well over $1 billion in cumulative revenue by end of 2024, turning a $1 billion+ acquisition into a financially productive enterprise.

The change from Heirs Oil & Gas to Heirs Energies happened in October 2023, the company concluded that this better reflected its ambition as an integrated energy company delivering both oil and gas to Nigeria’s domestic market and beyond.

Under the leadership of Tony Elumelu, the philosophy of Africapitalism which means leveraging private sector investment for social and economic prosperity is what has driven the company. According to Elumelu: “As someone from the Niger Delta…my vision was to build Africa’s largest indigenous‑owned integrated energy company… As I look back now, we have more than succeeded.”

CEO, Osa Igiehon has laid a lot of emphasis on their Brownfield Excellence (BFE) methodology. This means leveraging advanced technologies, digital field monitoring, well interventions, and data‑driven optimization anchored by disciplined execution and strong stakeholder collaboration.

In the past three years, Heirs Energies has empowered over 300 youths through training and skills programs. The company has also upgraded electrical infrastructure across host communities, impacting over 270,000 people.

As mentioned earlier, rigorous safety culture, zero fatalities and sustainable operations became hallmarks of Heirs Energies, thus propelling it to be able to contribute approximately 5% of Nigeria’s oil and gas production which is laudable for a three-year-old company.

Now, it is focused on doubling oil production at OML 17 toward 100,000 bpd in coming year, expanding gas output, supporting power generation and industrial users, aligned with Nigeria’s energy security needs.

The company has also decided to pursue new asset acquisitions across Africa, particularly mature brownfields that can be optimized rapidly via the BFE model and also implement the “AND strategy”, integrating hydrocarbons with renewables for an energy transition model tailored to Africa

Heirs Energies’ journey so far has a number of lessons for us. Some of which are that a Bold vision must be accompanied by rigorous execution and community alignment, that security and anti-theft measures are as important as production systems, that Indigenous leadership can outperform legacy operators when empowered and trusted and above all that Africapitalism works. Profit and purpose combined can unlock value for countries and communities.

In just three years, Heirs Energies turned OML 17 from a virtually non‑functional, theft‑ridden asset into a beacon of operational excellence and indigenous energy leadership. By January 2025, the company overcame production crises, security breakdowns, and community resistance, and delivered 50,000+ bpd production, nearly full recovery factor, zero fatalities, and substantial revenues.

As the company looks ahead, its new projects like Brownfield Excellence, stakeholder integration, disciplined execution, and Africapitalism is a powerful case study in how local investors can remake energy sectors around the continent.