Tony Elumelu, Chairman of Heirs Holdings, announced a significant increase in production at OML 17 to 51,000 barrels per day (bpd) thanks to cooperation with the Nigerian National Petroleum Company Ltd (NNPCL) and the Nigerian Upstream Regulatory Commission (NUPRC). The businessman and investor called for strategic investment in Nigeria’s gas sector to further drive economic growth and energy security.
Heirs Energies Limited acquired a 45% stake in OML 17 in a $1.2 billion deal with Shell Petroleum Development Company, Total E&P Nigeria, ENI, and in partnership with NNPC. Covering about 1,300 square kilometers, OML 17 has been in operation since the 1950s, once peaking at 150,000 bpd before declining to 27,000 bpd at the time of Heirs’ acquisition. Elumelu noted that upon taking control, production quickly rose from 28,000 bpd to 50,000 bpd within the first 100 days, despite setbacks from rampant crude oil theft.
The Chairman of Heirs Holdings recounted his efforts to address these challenges with NNPCL, which eventually led to substantial improvements in terminal receipts—from a mere 5% in late 2021 to an 85% average in 2024. Elumelu credited these gains to strong collaboration with NNPCL and regulatory bodies, enabling Heirs to achieve and maintain production levels of over 51,000 bpd.
He emphasized NUPRC’s innovative programs, such as the Nigerian Gas Flare Commercialisation Program, which aligns environmental stewardship with economic growth by reducing carbon emissions and creating local job opportunities. He commended these initiatives for their role in driving sustainability within the sector and called for a holistic approach to address challenges impacting Nigeria’s oil production, including infrastructure issues, regional instability, insufficient investments, regulatory ambiguities, and the global energy shift toward renewables.
Elumelu highlighted that Nigeria’s oil production has declined from approximately 2 million bpd to less than 1.5 million bpd, resulting in lost revenue, reduced market share, and stunted national development. He argued that Nigeria’s heavy reliance on oil jeopardizes its economic future, urging that all stakeholders collaborate on long-term solutions.
Elumelu proposed revitalizing Nigeria’s upstream sector with enhanced infrastructure, improved security, streamlined regulations, and increased investment. He also underscored the critical role of gas in Nigeria’s industrial development, advocating for large-scale gas projects to expand production and fuel national industrialization.