CEO of Heirs Energies, Osayande Igiehon, says the company is committed to expanding into the Republic of Congo as part of its Pan-African growth strategy. Speaking with CNBC Africa’s Kenneth Igbomor at the Congo Energy and Investment Forum, he highlights Heirs Energies’ expertise in optimizing mature oil fields and how this experience can help boost Congo’s oil production targets.
CEO of Heirs Energies, Osayande Igiehon, says the company is committed to expanding into the Republic of Congo as part of its Pan-African growth strategy. Speaking with CNBC Africa’s Kenneth Igbomor at the Congo Energy and Investment Forum, he highlights Heirs Energies’ expertise in optimizing mature oil fields and how this experience can help boost Congo’s oil production targets. The Kongo is one of the countries that we are firmly focused on. As you can see, coming here is our brothers and sisters that are here in this country and so we are quite keen to replicate what we have done with our asset OMS-17 in Nigeria. We are looking to replicate it in Nigeria but we are also looking to replicate in other places and Congo is one of the areas that we are focused on. I'd like you to speak on that, the value proposition of Hares Energies, what you bring to the table in terms of the oil and gas space and how a country like Congo can also benefit from your expertise. So Hares Energies, we acquired our asset OMS-17 in January of 2021 and we took over operational control in the middle of 2021 and in three months we doubled oil production and a few months after we doubled our gas production. We went through a lot of teething problems but we've established that company firmly and today it's well recognized that we are the fastest growing oil player in Nigeria. And beyond that, just thinking about the mood of the industry today, Hares Energies created the paradigm that you can have growth in the most challenging parts of the delta, highly urbanized, huge history of communal challenges, history of legacy wealth, but we took that asset and we have turned it around, turned it around on every area, technically, financially, with the communities, relationships and with relationships with all stakeholders. We are very proud to have built a model that delivered value for all stakeholders. One other thing that we are very good at is that we are experts in brownfields. So one of the things that you see in the industry is that when assets get mature or old, they are not properly maintained, they are not as easy to maintain and to produce and to grow as when they were new. But we have developed very excellent and very niche capabilities which we encapsulate in the terminology brownfield excellence, which we have applied to increase the value from these fields. That capability is codified, it's ours, it's proprietary and we are able to take that capability and transport it to every other mature asset. So coming to Congo, where there's an aspiration, just like Nigeria has to increase production, they have an aspiration to increase production from 270,000 to 500,000 barrels of oil per day. Our ambition was to go from about 1 million to 2 million to 3 million. So our capability is the type of capability that is needed, particularly in this kind of business where there are legacy assets and there are new opportunities. Everybody focuses on the new opportunities, development, more exploration and things like that. But we are experts in getting the most value from mature assets. Yeah, so I like that you put it that way because I'm looking at the value chain across here. It's good you mentioned about where you bring value and where you see your value coming in there. But in terms of a timeline of expansion, if you explain this market, what would that look like for Hares Energies? I think there is, typically when you look at a brownfield play, it will always be an asset that is in production, but it's suboptimally managed or it's delivering suboptimal value. So you take that asset and you work it very quickly. If you look at, if we use OMS17 asset as an example, we took over operational control in 1st of July 2021, it was producing plus or minus 25,000 barrels of oil per day. By around 5th or so of October 2021, we already hit 52,000 barrels of oil. So the gestation to turn the field around, because we have the know-how, it's not something that takes a very long time. What could take a long time is getting the deal through, because different areas have different jurisdictions, different legal treatments and regulations. So those are the areas, those are key things that are imperative for every country that wants to attract investors. The legal framework has to be sound, the regulatory framework has to be clear and understood, and the fiscals has to be enabling. And if we have that stability, and we make the investment, for us in our area of expertise in mature fields, we think gestation will be very quick, much quicker than in a greenfield scenario. Yeah, talking about getting the deals through, I can imagine that you're already in conversations with the government here, and I'm trying to imagine if you're also going to be part of the deal room sessions that are going to be playing out here, and what areas excite you? Well, you know, a deal is a deal, and I can't go into details on that. But just to say that Congo is a country, Republic of Congo is a country we want to be in, it's part of our expansion, we are very keen to do that. We have relationships here already, we know the country, not from upstream, but we would know that more, but we have relationships to build on. I think in the ecosystem of the deals happening, we will get a footing, and we'll grow the footing from there. And our entrance into this country and into this business will be very impactful, because everywhere we go, we don't just go to be a player, we go to be a player, and we grow to be an impactful player, with a clear view for shared prosperity. Yeah, because energy is a very broad field, and I know that Airs Energy is definitely your player across the family, beyond the online gas, but in terms of other aspects of the energy space, are you also seeing other opportunities here? So you know, Hares Holdings, if you look at the broader group, our ambition is to build an integrated energy business across Africa, and uniquely focused on addressing the energy needs of Africa. When you look at it across the spectrum, Hares Energy is in upstream, our sister company Transcore is in power generation and power distribution, and we are looking to expand both across the value chain and deeper geographically. So when you look at it from that context, whenever we are looking at the country, we are looking at it from a broad energy play, and from what we've seen here, I think we are looking first at two key sets of opportunities, upstream and gas to power, and this goes back to our core strengths that we have built and we are trying to replicate. All right, quite a lot has been said here today, but in terms of what you're leaving here with, what's that biggest takeaway? I think the biggest thing for me is just being back in Central Africa, and realizing that you know, Africa is just, these boundaries are not, they are administrative. These are our brothers and our sisters, and it's good to be home. I used to be in Gabon, I ran one of the largest companies in Gabon many years ago, and Gabon is just next door to Congo, and I even met someone from my previous company here. So for me, it's really good to be back home, and I have a very strong feeling that this will be another home for Hayes Energies. And that was the Chief Executive Officer of Hayes Energies, Osanye Odeh-Igeon, speaking at the Congo Energy and Investment Forum.
Theme: Heirs Energies' strategic expansion into the Republic of Congo to drive sustainable growth and value creation in the energy sector.
Heirs Energies, a leading energy company, is gearing up for expansion into the Republic of Congo as part of its Pan-African growth strategy. In an exclusive interview with CNBC Africa's Kenneth Igbomor at the Congo Energy and Investment Forum, CEO Osayande Igiehon outlined the company's commitment to leveraging its expertise in optimizing mature oil fields to bolster Congo's oil production targets. Igiehon highlighted Heirs Energies' successful track record in Nigeria, specifically with its OMS-17 asset, which saw a significant increase in oil and gas production shortly after operational control was assumed in 2021. The company's brownfield excellence model, focused on revitalizing mature assets, positions it as a key player in driving value and growth in the energy sector. With Congo aiming to ramp up oil production from 270,000 to 500,000 barrels per day, Heirs Energies' proven capabilities make it a strategic partner for the country's energy ambitions. The company's timeline for expansion involves swift turnaround strategies for underperforming assets, backed by a deep understanding of legal, regulatory, and fiscal frameworks in target markets. While specific details of ongoing discussions with the Congolese government remain confidential, Heirs Energies is poised to make a significant impact in the country's energy market, guided by a vision of shared prosperity and sustainable growth. Looking beyond oil and gas, the company's broader group, Hares Holdings, aims to develop an integrated energy business across Africa, focusing on addressing the continent's energy needs comprehensively. With a strategic focus on upstream operations and gas-to-power initiatives, Heirs Energies is well-prepared to capitalize on emerging opportunities in Congo and beyond. Reflecting on his return to Central Africa, Igiehon emphasized the familial ties that transcend national borders, underscoring the interconnectedness of the continent's energy landscape. His strong sense of belonging and nostalgia for past experiences in the region signal Heirs Energies' long-term commitment to establishing a presence in Congo and fostering sustainable energy development. The company's strategic entry into Congo reflects a broader vision for sustainable growth and collaboration in Africa's dynamic energy sector, setting the stage for a transformative partnership between Heirs Energies and the Republic of Congo.
"Africa is just, these boundaries are not, they are administrative. These are our brothers and our sisters, and it's good to be home."
['Heirs Energies', 'Republic of Congo', 'Africa', 'oil production', 'energy sector', 'business expansion', 'brownfield excellence']