Afrexim Bank backs Heirs Energies with $750 million reserve based lending facility

African Export-Import Bank (Afreximbank) has extended a US$750 million dual-tranche senior secured reserve-based lending facility to Heirs Energies Limited, one of Nigeria's leading indigenous integrated energy company. The transaction is aimed at strengthening Heirs Energies' capital structure and providing essential liquidity to meet its working capital needs while advancing an extensive field development in respect of OML 17. 

The agreement was formalised during a signing ceremony in Abuja by Dr. George Elombi, President and Chairman of the Board of Directors of Afreximbank, and Mr. Tony O. Elumelu, C.F.R Chairman of Heirs Energies Limited. 

Afreximbank acts as Mandated Lead Arranger, Facility Agent, and Security Agent for the transaction, which represents a key milestone in the ongoing strategic partnership between the two organisations. Banwo & Ighodalo and TEMPLARS act as Nigerian counsel to Afrexim and Heirs Holdings respectively.

The collaboration between Afreximbank and Heirs Energies traces back to 2021, when the company executed the acquisition of a 45 per cent participating interest in the OML 17 Joint Venture (Shell/SPDC, Total, and ENI/NAOC) through a US$1.1-billion deal. That transaction, one of the largest indigenous acquisitions in Nigeria's oil and gas history, was supported by a banking consortium led by Afreximbank contributing up to US$250 million.

OML 17 is a large onshore licence, covering the northern half of Port Harcourt, the largest city in the Niger Delta. There are 15 oil and gas fields on OML 17, four of which are producing: Agbada, Elelenwa, Nkali, and Obigbo North.

Following the acquisition, Heirs Energies says it has successfully doubled crude oil production from around 25,000 barrels per day to an average of 50,000 barrels per day, alongside substantial volumes of associated and non-associated gas. The company also delivered first gas from the Agbada Non-Associated Gas Plant on 21 November 2021, achieving this milestone just months after assuming control of an asset that had remained under construction for over a decade under the prior operator.

Heirs Energies stands as the leading gas supplier in the Eastern Domestic Network and provides gas to three key power plants, together accounting for approximately 15 per cent of Nigeria's total installed electricity generation capacity.