Promising Future for OML17: Significant Decrease in Oil Theft and Increased Production
Heirs Energies has reported a significant decrease in oil theft at the Oil Mining License (OML) 17, from 97 per cent in 2021 to 15 per cent in 2023, representing an impressive 82 per cent decrease. This has led to an increase in production, reaching 40,000 barrels per day (bpd).
The company made a substantial investment of $1.2 billion to acquire assets from Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited, and ENI, forming a joint venture partnership with the Nigerian National Petroleum Company Limited (NNPCL). Consequently, the company is now supplying 100 per cent of its gas production to the domestic market.
This achievement is vital for Nigeria, which has been struggling to combat oil theft and vandalism to increase production. Currently, the country’s production stands at approximately 1.3 million bpd, falling short of the 1.78 million bpd anticipated in the 2024 budget.
NNPCL reported that over 4,090 illegal refineries were shut down last year in an effort to combat crude theft. Heirs Energy attributed the significant reduction in theft and the increase in oil production to a strategy centred on community engagement. The company also highlighted the positive impact of the government’s actions in addressing pipeline security and related concerns.
In celebration of its three-year anniversary, Heirs Energy emphasized the role of its gas supply in meeting local demand and providing energy to households, power plants, and various gas-reliant industries. The company also reported maintaining incident-free operations in OML 17, with 1.5 million man-hours and zero Loss Time Injury (LTI) incidents.
Moreover, Heirs Energy has been actively involved in empowering over 300 young individuals through skill acquisition programmes. The company has also contributed to electrical infrastructure upgrades across host communities, positively impacting a population of over 270,000 people.
The concerted efforts to combat oil theft and vandalism, coupled with strategic community engagement and investment in infrastructure and human capital, have yielded promising results for OML17. These developments are a step towards securing Nigeria’s sustainable energy future and redefining the country’s energy sector.
The progress made by Heirs Energy serves as a testament to the potential for effective collaboration between the private sector and the government in addressing critical energy challenges. As the company continues to expand its operations and make a positive impact on local communities, it is setting a commendable example for sustainable and responsible energy development in Nigeria.
