Heirs Energies acquires 20% stake in Seplat Energy for $500m

Heirs Energies has acquired a 20.07% stake in Seplat Energy Plc for $500 million, becoming the company’s largest single shareholder and signaling a shift in Africa’s energy investment landscape.

The acquisition, supported by Afreximbank and Africa Finance Corporation, marks a landmark African-led deal demonstrating the continent’s capacity to finance major energy transactions. The move follows Heirs Energies’ $750 million financing agreement with Afreximbank last week, intended to support ongoing operations and expansion.

Under the agreement, French oil and gas firm Maurel & Prom (M&P) sold its entire 20.07% stake, comprising 120.4 million shares, at 305 pence per share. The transaction represents a 10.9% premium over Seplat’s current trading price of 275 pence. An upfront payment of $248 million has been made, with the balance due within 30 days via an irrevocable letter of credit. A further $10 million may be paid depending on Seplat’s share price performance over the next six months.

Seplat, Nigeria’s leading independent oil and gas company, currently produces about 286,000 barrels of oil equivalent per day (kboepd). Heirs Energies adds roughly 70 kboepd from its OML 17 operations, which also delivers 120 million cubic feet of gas per day. The combined production positions Heirs Energies as one of Africa’s largest integrated energy firms.

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“This acquisition reflects our strong belief in Africa’s ability to own, develop, and responsibly manage its strategic resources,” said Tony Elumelu, Chairman of Heirs Energies. “It is a long-term investment in Nigeria’s and Africa’s energy future, driving energy security, industrialisation, and shared prosperity.”

M&P, a founding shareholder since Seplat’s inception in 2010, praised its partnership over the past 15 years. “We are proud to have supported Seplat’s growth into a leading energy company in Nigeria,” said M&P CEO Olivier de Langavant. “Now is the right time to monetise our investment and focus on asset-level growth elsewhere.”

Legal and financial advice for the transaction was provided by Herbert Smith Freehills Kramer and Morgan Stanley. With Heirs Energies stepping in as a long-term strategic investor, the deal marks a significant ownership shift and could influence further consolidation in Nigeria’s oil and gas sector.

Meanwhile, another major energy transaction closed last month as Transgrid Enerco acquired a 60% controlling stake in Eko Electricity Distribution Company for N360 billion. The deal, completed on Dec. 30, 2025, included an upfront cash payment of N180 billion, with the balance secured via bank guarantees. Transgrid, a consortium including Stanbic IBTC Infrastructure Growth Fund, North-South Power Company, and Axxela, aims to improve service reliability, expand metering, and enhance customer satisfaction in Lagos and parts of Ogun State.

Industry analysts view both transactions as signals of renewed investor confidence in Nigeria’s energy and power sectors. Heirs Energies’ acquisition highlights the rising influence of African investors in strategic resources, while Transgrid’s entry into Eko DisCo demonstrates growing appetite for market-driven electricity distribution deals.