The Chairman of Heirs Holdings, Tony Elumelu, has said that the production at OML 17 has mad a big rebound to 51,000 barrels per day (bpd) following collaboration with the Nigerian National Petroleum Company Ltd and the Nigerian Upstream Regulatory Commission (NUPRC).
The businessman also called for critical investments in the gas sector.
The investor who described himself as the intersection of finance and energy revealed the figures during an event covered by NewsNGR.
Heirs Energies Limited acquired 45 per cent stake in OML 17 for $1.2bn from Shell Petroleum Development Company of Nigeria, Total E&P Nigeria and ENI and a joint venture with the NNPC.
The OML 17 covers a land area of approximately 1300km2 and has been in production since 1950s.
The asset’s peak production was 150,000bpd before it fell to 27,000bpd when Heirs Holdings acquired it from the International Oil Companies (IOCs).
Elumelu who doubles as the Group Chairman of United Bank for Africa explained how Heirs raised crude oil production from the assets at the initial stage before the disruptions resulting from crude oil theft.
Elumelu said, “At Heirs Energies, we are actively contributing to this solution. In the first 100 days, after we took over the operation of OML 17 assets in 2021, we doubled our production from 28,000 bpd to 50,000 bpd. However, we suffered an unabated crude oil theft.”
According to the billionaire, production at OML 17 was significantly impacted, adding that he sought the intervention of the state-owned oil company.
The Heirs Chairman said, “I complained and I recall that day, the Group Chief Executive Officer of the NNPC, Mr. Mele Kyari, called two to three times from London. Let me just say, collaboratively with NNPCL, we have made progress from a low of 5 per cent terminal receipt in December 2021, year-to-date in 2024 we have recorded an average terminal receipt of 85 per cent.
“Today, there is a remarkable improvement and a good example of what a purposeful collaboration between NNPCL and operators.
“With the improvement in the operating environment, we have started our investment and production.”
Elumelu said his firm “Finally achieved over 51,000bpd and we will continue our production on the asset.”
He linked the achievement to strong collaboration and regulatory support.
He highlighted that NUPRC’s “Efforts in promoting sustainable practices, such as the Nigerian Gas Flare commercialisation program, exemplify the innovation required to balance stewardship with economic growth.
“This initiative will not only reduce our carbon footprint but also create valuable opportunities for our workforce and communities.”
Elumelu also harped on the need to tackle the several challenges frustrating crude oil production in Nigeria.
Elumelu said, “We must acknowledge the elephant in the room. Nigeria’s oil production has been on a downward trajectory, falling from peaks of about 2 million barrels per day to recent lows, below just 1.5 million a day.
“This decline has led to lost revenues, reduced global market share, and missed opportunities for national development. The root causes are multifaceted, most of them being infrastructure, the challenge in the Niger Delta, stalled investments, regulatory uncertainties, and the global shift towards renewable energy that has stifled investments.
“These factors combine creating the very foundation of our economy as a heavily dependent on oil. As a nation, we cannot permit this to continue and squander our inheritance and betray the next generation and national development.
“By trying to grow this level, it is achievable. It takes all stakeholders at the table to work together and commit to this target. But to sustain this initiative, we should go beyond just increasing production.”
The businessman suggested solutions that would help the country raise oil output.
He said, “We should analyse a comprehensive strategy to revitalise our entire upstream sectors, infrastructure organisation, security enhancement, regulatory streamlining and investment attraction, etc.
“We must also focus on gas because we must embark on major projects to boost our current production- gas is very critical. And we know that the importance of gas is critical in driving and powering our country’s industrialisation.”