Financial Energy Review
………by Ben Ndubuwa…..
Heir Energies Limited is on track to significantly increase its oil production capacity, according to Managing Director Osayande Igiehon. Speaking on Arise TV today, Igiehon provided an optimistic outlook for Nigeria’s oil and gas sector, revealing ambitious targets set for 2025 and Sets to Collaborate to Meet 2.7 million barrel per day (MBD) Nigeria’s target for 2027, alongside crucial steps needed to meet these goals.
Igiehon highlighted that Heir Energies, through strategic investments and operational improvements, has already doubled its production output. “Our doubling of production is a key component of the increase we’ve seen in the sector. For this year, our target is to grow production to an additional 2.1 million barrels per day,” he said.
The Managing Director also referenced projections from the Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, who anticipates the country could aim for 2.5 million barrels per day in this year. He emphasized that achieving these ambitious goals would require collaboration across the industry, particularly between indigenous companies and stakeholders in the sector. “With the big developments we’ve completed and continued collaboration among indigenous players, we are well-positioned to contribute significantly to this growth,” Igiehon said.
Looking toward the future, Igiehon discussed the government’s 2027 target of reaching 2.7 million barrels per day, a goal that could become attainable if current projections are met. “If we achieve 2.5 million barrels per day this year, the target for 2027 will likely be much more significant,” he stated confidently.
An important part of Heir Energies’ growth plan involves gas production, which Igiehon believes will complement the increase in oil output. “This oil we’re producing is emblematic of the broader growth in gas production. For example, we produce over 80 million cubic feet of associated gas daily, and all of that is fed into the domestic market,” he explained. The gas is primarily used for power plants, gas-based industries, and other essential services, creating jobs and improving quality of life for millions of Nigerians.
“It’s estimated that the gas we supply is powering over 2 million homes in Nigeria,” Igiehon added. “This level of impact is significant, and we’re just getting started.”
As Heir Energies pushes forward, Igiehon stressed the need for continued work on Nigeria’s existing infrastructure, including reopening and upgrading wells and pipelines that have been underutilized. He explained that, upon taking over operations of their assets, only 30 of the existing wells were producing. Today, that number has increased to over 100, leading to a production surge from 25,000 barrels per day to around 55,000 barrels. “This expansion is just the beginning,” Igiehon said.
Despite this progress, the path to achieving 2.5 million barrels per day remains challenging, particularly given the extensive number of idle wells across the country. “One of the companies we spoke with mentioned that they had 600 wells in an asset they just acquired – only 200 were operational, and 400 were shut in. There’s a lot of work to be done,” Igiehon noted.
However, the efforts to restore these wells are part of a broader strategy to achieve Nigeria’s national production goals. “The first objective is to get back to 2.4 or 2.5 million barrels per day. After that, we will begin expanding our investments into new oil and gas projects, both onshore and offshore,” he said.
Igiehon also highlighted the government’s role in providing key fiscal incentives and regulatory improvements to stimulate growth in the sector. He pointed to the presidential directives from President Bola Tinubu’s administration, which aim to create a more favorable environment for investment. “These incentives have made a significant difference, particularly in terms of fiscal policies and development thresholds,” he added.
Looking ahead, Igiehon expressed optimism for the future of Nigeria’s oil and gas sector, emphasizing the potential for job creation, economic growth, and energy security. As Heir Energies and other stakeholders continue to push forward, the industry looks set to play a central role in the country’s economic recovery and growth in the years to come.
