Heirs Energies doubles crude output to 55,000bpd in five years, driven by stronger security, reforms and increased indigenous participation in oil production

Heirs Energies has doubled its crude oil production capacity to 55,000 barrels per day (bpd) five years after taking operational control of its assets, marking a significant expansion for one of Nigeria’s leading indigenous energy companies.

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The company’s Chief Executive Officer, Osayande Igiehon, disclosed the milestone on Tuesday at the 49th Nigeria Annual International Conference and Exhibition organised by the Society of Petroleum Engineers, Nigeria Council, in Lagos.

The Heirs Energies doubles crude output to 55,000bpd growth follows the company’s takeover of operational control in 2021, when production stood at about 25,000 barrels per day.

“We took our assets in January 2021. We took over operational control in July at 25,000 barrels of oil per day. Today we are producing more than 50,000 barrels of oil per day. I got a production report this morning that we produced 55,000 barrels yesterday,” Igiehon said.

Beyond crude production, the company has also increased its gas output, with daily production now exceeding 100 million standard cubic feet, according to the chief executive. He described the progress as evidence of the company’s ability to scale operations within a relatively short period.

Igiehon attributed the growth to several factors, including improved pipeline security, regulatory changes introduced through the Petroleum Industry Act, stronger relationships with host communities and greater participation by Nigerian-owned companies across the oil and gas value chain.

He highlighted improved pipeline protection as a major contributor to operational efficiency, noting that the volume of crude reaching the company’s export terminal had increased dramatically since 2021.

“When we came in during 2021, only three per cent of our production reached the export terminal. Today, we deliver between 95 and 100 per cent of production to the terminal,” he said.

The CEO added that Heirs Energies had not lost any crude oil production to community-related disruptions for more than five years, attributing the achievement to sustained engagement with host communities.

The company’s expansion reflects a broader shift in Nigeria’s oil sector, where indigenous operators have taken a larger role following the exit or divestment of some international oil companies from onshore assets.

Igiehon said indigenous firms now account for more than 60 per cent of Nigeria’s crude oil production, compared with an estimated 20 to 30 per cent before the COVID-19 pandemic.

“If you look at indigenous participation in the operating sector, you will find out that pre-COVID, participation was somewhere around 20 to 30 per cent. Today, over 60 per cent of Nigeria’s oil production is operated by indigenous companies,” he said.

He linked the increased role of local operators to Nigeria’s wider production recovery, noting that national crude output has risen from about 700,000 bpd in 2022 to approximately 1.7 million bpd currently.

However, Igiehon cautioned that reaching the Federal Government’s ambitious three million barrels per day production target would require additional investment, technical expertise and stronger industry capacity.

“The ambition is not simply to move from 1.7 million barrels to three million barrels. We also have to deal with decline rates, which means the industry must develop substantially more capacity to achieve that target,” he said.

He identified limited scale among indigenous oilfield service companies as one of the sector’s major challenges, calling for greater consolidation, improved financing options and stronger partnerships among Nigerian energy firms.

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The latest production milestone positions Heirs Energies as a key player in Nigeria’s drive to increase domestic participation in the oil industry while boosting national output and energy security.