Tony Elumelu’s Heirs Energies doubles gas output at OML 17

Nigerian billionaire Tony Elumelu’s push into the energy sector has delivered its biggest milestone yet after a joint venture between his Heirs Energies Ltd. and the Nigerian National Petroleum Co. doubled natural gas output from OML 17, following a first-of-its-kind rigless well intervention.

The petroleum block, acquired by Heirs Energies in 2021 in one of Nigeria’s biggest indigenous oil and gas transactions, now produces about 135 million standard cubic feet of gas per day, feeding power plants across the country’s east and easing chronic supply shortages.

The additional gas has already transformed electricity generation at Transcorp’s TransAfam Power, another company chaired by Elumelu. Output there has jumped from around 50 megawatts to more than 180 megawatts, with peaks touching 200 megawatts. Other plants supplied through the same network, including First Independent Power and Geometric Power, have reported more stable operations.

In total, generation from power plants tied to the OML 17 network has surged past 350 megawatts, enough to supply hundreds of thousands of homes and small businesses in a region that frequently battles blackouts.

The well responsible for the increase had been shut in due to heavy water production. Rather than fund a full rig workover or drill a new well, engineers at Heirs Energies recompleted the reservoir using a rigless through-tubing technique, unlocking a fresh interval at around 15% of the cost of spudding a new well.

The move has been applauded by government officials seeking more investment from local operators. Olu Verheijen, President Bola Tinubu’s special adviser on energy, wrote to Heirs Energies chief executive Osa Igiehon, calling the achievement “a testament to Nigerian engineering expertise and persistent technical innovation,” and promising continued support.

For Elumelu, the development strengthens his long-term bid to build a vertically integrated Nigerian energy business spanning fuel production, electricity generation and distribution. His power subsidiary, Transcorp Power, is already among the country’s largest generators, while Heirs Energies has become one of Nigeria’s top indigenous upstream players after taking over OML 17 from Shell, Eni and TotalEnergies.

“Responsible, innovative operations in brownfield assets are essential for Nigeria’s energy security,” Igiehon said, adding that the milestone was achieved by a fully Nigerian technical workforce.

NNPC executives also praised the intervention. Udy Ntia, executive vice president for upstream, said the OML 17 partnership “shows what disciplined execution and collaboration can deliver for national development,” while Seyi Omotowa, head of the regulator NNPC Upstream Investment Management Services, called it a “model for how to optimize Nigeria’s hydrocarbon assets.”

Elumelu, who built United Bank for Africa Plc into a pan-African financial institution and owns one of the region’s largest hospitality portfolios, has recently focused more capital on energy infrastructure. The OML 17 breakthrough gives him additional leverage in a sector where foreign majors are retreating and policymakers are pushing local firms to fill the gap.

With more rigless gas-focused interventions planned, OML 17 could become a template for Nigeria’s broader “gas-to-power” strategy: use indigenous operators to unlock stranded resources and feed the country’s struggling grid.