- Heirs Energies CEO Osayande Igiehon said Africa’s substantial hydrocarbon resources have not translated into sufficient production, reliable electricity or broad economic value.
- He cited Heirs Energies’ OML 17 turnaround, which lifted oil output from below 27,000 barrels per day to more than 55,000 barrels per day, alongside higher gas production.
Osayande Igiehon, Managing Director and Chief Executive Officer of Heirs Energies, said Africa’s large hydrocarbon reserves have yet to deliver their full economic potential because production remains constrained and unreliable electricity continues to limit industrial activity.
Igiehon made the remarks in his keynote address at the 15th Emmanuel Egbogah Foundation Lecture Series at the Emerald Energy Institute, University of Port Harcourt. Fidelis Akpoghiran, Senior Vice President, Business Transformation and Innovation at Heirs Energies, delivered the address on his behalf.
The lecture focused on “The Expanding Role of Upstream Independents in Nigeria: Implications for Petroleum Value Creation and Public Value.”
Igiehon said Nigeria has produced crude oil for more than six decades and holds some of Africa’s largest hydrocarbon reserves. However, he noted that the country still produces below its potential, faces unreliable electricity and struggles to convert petroleum resources into broad economic value.
He said the emergence of indigenous upstream operators represents a major structural change in Nigeria’s petroleum industry. However, he cautioned that local ownership alone cannot guarantee stronger production or greater national value.
“An asset can change ownership in a day but capability cannot,” Igiehon said.
He added that companies must match ownership with technical capability, investment and operational discipline. According to him, a change in ownership creates little national benefit if production declines, infrastructure deteriorates and investment weakens.
Igiehon cited Heirs Energies’ acquisition of OML 17 in 2021 as an example of the operational challenges facing indigenous operators. He said production stood below 27,000 barrels per day when the company assumed operatorship.
“When we assumed operatorship of OML 17 in 2021, production was below 27,000 barrels per day. We inherited a mature brownfield asset and soon faced unprecedented crude theft and the shutdown of a critical evacuation route,” he said.
He said Heirs Energies responded by restoring wells, rehabilitating ageing facilities, strengthening asset integrity and improving production-system visibility.
The company subsequently developed what Igiehon described as “Brownfield Excellence,” an approach focused on extracting additional value from existing assets through targeted technical interventions and investment.
“Through more than 100 well interventions and disciplined brownfield investment, we increased production to over 55,000 barrels per day,” he said.
The company also increased gas production from below 50 million standard cubic feet per day to approximately 135 million standard cubic feet per day. Igiehon said the company directs the gas to Nigeria’s domestic market, supporting about 450 megawatts of electricity generation.
He said the company achieved the production growth with a 100% Nigerian workforce and recorded 10 million Lost Time Injury-free man-hours in March 2026.
Igiehon said mature assets still contain significant economic value when operators apply engineering expertise, targeted investment and effective asset management.
“Mature assets are not necessarily exhausted assets. A shut-in well may still contain value. An ageing facility may still have productive life. A declining field may still become a platform for growth,” he said.
He linked the performance of indigenous operators to Nigeria’s broader ambition to increase crude oil production toward three million barrels per day by 2030. He said independent operators will play a significant role in achieving that target by improving performance across assets already under their control.
The Heirs Energies CEO also called for stronger investment conditions across the upstream sector. He said indigenous operators must demonstrate transparency, discipline and sound management to attract capital, while government and regulators must provide policy stability, timely approvals and commercially viable operating conditions.
Igiehon further connected upstream petroleum development with electricity generation, industrial activity and public welfare. He said gas production must operate as part of an integrated value chain involving transportation, power generation and payment discipline.
“When gas leaves OML 17 and becomes electricity for a hospital, power for a factory or energy for a small business, petroleum development becomes meaningful to ordinary Nigerians,” he said.
He also identified talent development as another priority for indigenous operators. As international oil companies reduce their operating footprints in some areas, he said Nigerian independents must provide training and career opportunities for the next generation of energy professionals.
According to Igiehon, Nigeria therefore needs both reserve replacement and talent replacement to sustain the petroleum industry.
“At Heirs Energies, our experience has strengthened our belief in what Nigerian companies can achieve. Ownership creates the opportunity,” he said.
“Capability converts that opportunity into performance and purpose converts performance into public value.”
The Heirs Energies CEO said indigenous upstream companies must ultimately focus on converting petroleum assets into productive enterprises, gas into electricity and industrial activity, and Nigerian talent into globally competitive expertise.