Heirs Energies acquires 20% stake in Seplat Energy in $500 million deal

Nigerian energy company Heirs Energies Limited said on Wednesday it has acquired French firm Maurel & Prom’s entire 20.07 percent stake in Seplat Energy Plc for approximately $500 million, marking one of Nigeria’s largest energy sector transactions this year and strengthening indigenous ownership of the country’s strategic oil and gas assets.

The deal, which values Seplat shares at 3.05 pence each, involves the transfer of 120.4 million ordinary shares and represents a significant consolidation of Nigerian ownership in the country’s energy sector.

Following the transaction, Heirs Energies becomes Seplat’s most significant shareholder with (20%); joining other institutional investors including Petrolin Group (13.77%); Sustainable Capital (9.7%); Professional Support (8.5%); and Allan Gray Investment Management (5.61%).

Heirs Energies, controlled by billionaire businessman Tony Elumelu, said the acquisition aligns with its strategy to increase indigenous participation in strategic energy assets across Africa. The transaction was financed with support from two pan-African lenders, the African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC).

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“This acquisition reflects our strong belief in Africa’s ability to own, develop, and responsibly manage its strategic resources,” Elumelu, who serves as chairman of Heirs Energies, said in a statement. “It is a long-term investment in Nigeria’s and Africa’s energy future.”

The acquisition positions Heirs Energies as a significant shareholder in Seplat, one of Nigeria’s largest independent oil and gas producers with 2P reserves of 1.043 billion barrels of oil equivalent as of December 2024 and working interest production of 135.6 thousand barrels of oil equivalent per day as of October 2025.

Paris-based Maurel & Prom, which focuses on African oil and gas exploration and production, had held the stake for several years. The French company did not immediately respond to requests for comment on the reasons for the divestment.

The transaction comes as Nigeria seeks to boost domestic investment in its energy sector amid declining foreign participation. International oil majors including Shell, ExxonMobil and Chevron have been gradually reducing their onshore Nigerian operations, creating opportunities for indigenous companies to acquire mature assets.

Nigeria, Africa’s largest crude producer, has struggled with underinvestment in its oil and gas sector due to regulatory uncertainty, security challenges in oil-producing regions, and difficulties in passing comprehensive petroleum industry reforms.

The involvement of Afreximbank and AFC in financing the deal highlights the growing capacity of African financial institutions to support large-scale transactions. Afreximbank, headquartered in Cairo, has been expanding its energy sector financing across the continent, while AFC, based in Lagos, focuses on infrastructure and industrial projects.

“This landmark achievement was supported by two leading African financial institutions, Afreximbank and AFC,further demonstrating Africa’s capacity to finance its own deals,” Heirs Energies said.

Heirs Energies, which began operations in 2021, has rapidly established itself as a major player in Nigeria’s oil and gas sector. The company operates Oil Mining Lease (OML) 17 in the Niger Delta, producing over 50,000 barrels of oil per day and 120 million cubic feet of gas daily, with a reserves base exceeding 1.5 billion barrels of oil and 2.5 trillion cubic feet of gas.

Elumelu, who made his fortune in banking before diversifying into energy, power and other sectors, has been a vocal advocate for increased African ownership of the continent’s natural resources. His investment vehicle, Heirs Holdings, has interests across multiple African countries.

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The acquisition could provide Seplat with additional capital and strategic support as it seeks to expand production and navigate Nigeria’s challenging operating environment. Seplat shares have fluctuated significantly in recent years due to oil price volatility and operational challenges.

Industry analysts said the deal reflects growing confidence among African investors in the continent’s energy sector despite global pressure to transition away from fossil fuels.

“We are pleased to support its continued growth and value creation for all stakeholders,” Elumelu said, referring to Seplat’s platform and prospects.

The transaction is expected to close following regulatory approvals from Nigerian authorities, including the Securities and Exchange Commission and other relevant bodies.

Dipo Oladehinde is a skilled energy analyst with experience across Nigeria's energy sector alongside relevant know-how about Nigeria’s macro economy.

He provides a blend of market intelligence, financial analysis, industry insight, micro and macro-level analysis of a wide range of local and international issues as well as informed technical rudiments for policy-making and private directions.

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