Heirs Energies Limited, owned by Nigerian businessman Tony Elumelu, has acquired a 20.07% equity stake in Seplat Energy Plc, Nigeria’s biggest indigenous oil and gas company by market valuation, in a transaction valued at about $500 million.
The deal was executed with financial backing from two African development finance institutions, Afreximbank and the Africa Finance Corporation (AFC), with both institutions providing financing for the transaction.
According to a statement released on Monday, Heirs Energies confirmed that it purchased the entire shareholding previously owned by French energy firm Maurel & Prom in Seplat Energy, making it the company’s single largest shareholder.
Commenting on the transaction, Tony Elumelu, chairman of Heirs Energies, said the acquisition aligns with the company’s long-term focus on energy investments in Africa.
“This acquisition reflects our belief in Africa’s capacity to own, develop, and manage its strategic resources. It is a long-term investment in Nigeria’s and Africa’s energy future and aligns with our objective of supporting energy security and industrial development.
“Seplat Energy has established a well-governed operating platform with long-term growth potential, and we are pleased to support its continued development and value creation for stakeholders,” he said.
The company is listed on the Nigerian and London Stock Exchanges and is Nigeria’s largest indigenous oil and gas firm by market value, following years of acquisitions and production growth.
Deal follows major financing raise
To add to this, the transaction comes just a week after Heirs Energies secured a $750 million financing facility from Afreximbank to support its operations and expansion plans.
According to industry sources, the timing of the Seplat stake acquisition is consistent with Heirs Energies’ strategy of expanding beyond operated assets into equity positions in established energy companies.
The size of the financing facility places Heirs Energies among a small group of indigenous energy firms in Nigeria with access to large-scale capital for upstream and integrated energy investments.
With the completion of the transaction, the combined production capacity of both companies becomes more substantial. Seplat Energy currently produces about 286,000 barrels of oil equivalent per day (kboepd), while Heirs Energies’ operated assets produce approximately 70,000 kboepd.
Subsequently, the combined daily output of both firms stands at roughly 356,000 kboepd, comprising about 266,000 barrels of oil per day and nearly 490 million cubic feet of gas per day.
The combined production profile places the two companies among the largest indigenous-controlled contributors to Nigeria’s upstream oil and gas output.
What you should know
The acquisition extends beyond upstream oil and gas operations. Tony Elumelu also has significant interests in Nigeria’s power sector through Transcorp Power in Delta State and TransAfam Power in Rivers State.
Both power plants account for about 17% of Nigeria’s installed electricity supply capacity, according to sector data.
In addition, the Abuja Electricity Distribution Company (AEDC), in which Elumelu holds significant interests, services an area of more than 126,000 square kilometres, covering Abuja, Kogi, Nasarawa, and Niger states.
Whereas these assets operate across different segments of the energy value chain, the acquisition of a major stake in Seplat further expands Heirs Energies’ exposure to oil production, gas supply, power generation, and electricity distribution within Nigeria’s energy sector.
