Heirs Oil and Gas Ltd, a Tony Elumelu owned company that recently acquired a 45 percent stake in Oil Mining Lease (OML) 17 from Shell, Total and ENI, is planning to restore crude oil production to former output levels and make it one of Nigeria’s largest local operators.
Heirs completed the purchase of OML 17 through TNOG Oil and Gas Limited last month. The acquisition that includes all assets of Shell Petroleum Development Company of Nigeria Limited (30 Percent), Total E&P Nigeria Ltd (10 percent) and ENI (five percent), will make Heirs Oil and Gas Ltd one of the biggest local crude oil producers and up Nigeria’s total crude oil production if the company could attain old production level of the block.
“Our focus is to try to take this asset back to its peak production levels within a reasonable timeframe,” Heirs Chief Financial Officer Samuel Nwanze said in an interview. He explained that while Shell once pumped more than 100,000 barrels a day from OML 17, the block’s current output is less than 30,000.
Heirs is now looking to return OML 17 to a full capacity of 100,000 barrels per day.
Other top local players are Seplat Petroleum Development Co., Aiteo Eastern E & P Company Ltd. and First Exploration & Petroleum Development Company Ltd.