Heirs Energies, one of Africa’s leading indigenous integrated energy companies, has revealed it has doubled its oil production to 52,000 barrels per day (bpd) within a span of just 100 days.
Osayande Igiehon, chief executive officer of Heirs Energies Limited, revealed this in an interview with the Financial Times, where he highlighted the company’s achievements, despite the hurdles surrounding Nigeria’s oil and gas sector.
Igiehon told Financial Times, “We took over operational control from the previous operator in July 2021, and we essentially doubled our oil production in 100 days from 27,000 bpd to 52,000 bpd.”
However, he said the company noted a subsequent decline in terminal deliveries despite increased production, due to oil theft. He acknowledged that the government’s efforts in addressing pipeline security helped the company regain stability in its production.
“In December 2021, we only got 3 percent of our production at the terminal, but today we now get an average of 85 percent of our production. Lots of appreciation to the government for these very decisive steps they have taken and sustained to secure the pipeline,” Igiehon said.
He underscored oil theft as a significant obstacle to Nigeria’s oil sector investment.
“The country should be in the position to produce 2 to 2.5 million barrels of oil per day. Today, we are only able to produce somewhere in the range of 1.2 to 1.5 million barrels of oil per day. There are several causative factors, but the biggest is the theft. The second challenge is then the point of investment. Because of the theft, it has created a scenario where there has been a stifling of investment in the sector,” Igiehon emphasised.
He also noted that contrary to the global trend towards alternative energy sources, Nigeria is witnessing a shift from international oil companies (IOCs) to indigenous firms.
“It is posited that by the end of the decade, most of the international oil companies will no longer be active onshore, paving the way for indigenous oil companies,” Igieehon remarked.
Since assuming control of the Oil Mining License (OML 17) in July 2021, Heirs Energies has managed approximately 5 percent of Nigeria’s oil production and a similar share of domestic gas production.
