Heirs Energy just locked down a massive seven hundred and fifty million dollar financing deal from the African Export-Import Bank. The agreement, signed in Abuja, aims to dramatically boost the company's production targets. Heirs wants to hit roughly one hundred thousand barrels of oil each day, plus two hundred fifty million cubic meters of gas. The company's chairman, Tony Elumelu, and Afreximbank's president, Dr. George Elombi, both spoke at the signing event about the importance of African capital funding African businesses.
Elumelu called Afreximbank the continent's most impactful financial institution, crediting it for supporting the venture from its difficult beginning through this new expansion phase. He detailed serious past challenges, mentioning that the previous federal government under President Muhammadu Buhari initially blocked their acquisition of Oil Mining Lease Seventeen. Regulatory delays lasted over a year and a half, forcing the company to incur heavy bank charges and legal fees before finally proceeding with a stripped-down deal. Elumelu emphasized that his company always met its financial obligations, even during periods of rampant oil theft, because performance is what justifies such institutional support.
Dr. Elombi stated that backing the African energy sector is a fundamental mandate for the bank, warning that nearly two dozen economies on the continent would face trouble without it. He affirmed Afreximbank's permanent commitment as an African-owned entity, revealing plans to channel even more capital through a dedicated energy bank. The executive director of Heirs Energies, Samuel Nwanze, provided operational specifics. He said current production sits above fifty thousand barrels daily, with gas at about one hundred twenty million cubic meters. This new funding package, structured as a five-year reserve-based loan, will refinance existing debt and provide fresh capital for growth, targeting their production goals within three years. Nwanze noted the asset's gas output has already doubled since acquisition, helping power plants like Geometric and Transcorp increase electricity generation.
Elumelu called Afreximbank the continent's most impactful financial institution, crediting it for supporting the venture from its difficult beginning through this new expansion phase. He detailed serious past challenges, mentioning that the previous federal government under President Muhammadu Buhari initially blocked their acquisition of Oil Mining Lease Seventeen. Regulatory delays lasted over a year and a half, forcing the company to incur heavy bank charges and legal fees before finally proceeding with a stripped-down deal. Elumelu emphasized that his company always met its financial obligations, even during periods of rampant oil theft, because performance is what justifies such institutional support.
Dr. Elombi stated that backing the African energy sector is a fundamental mandate for the bank, warning that nearly two dozen economies on the continent would face trouble without it. He affirmed Afreximbank's permanent commitment as an African-owned entity, revealing plans to channel even more capital through a dedicated energy bank. The executive director of Heirs Energies, Samuel Nwanze, provided operational specifics. He said current production sits above fifty thousand barrels daily, with gas at about one hundred twenty million cubic meters. This new funding package, structured as a five-year reserve-based loan, will refinance existing debt and provide fresh capital for growth, targeting their production goals within three years. Nwanze noted the asset's gas output has already doubled since acquisition, helping power plants like Geometric and Transcorp increase electricity generation.
