Nigerian billionaire Tony Elumelu has significantly expanded his energy empire after his company, Heirs Energies Limited, acquired a 20 percent stake in Seplat Energy Plc for $496 million, making it the largest shareholder in one of Nigeria’s premier independent oil and gas producers.
The landmark acquisition, announced on December 31, 2025, sees Heirs Energies purchasing French firm Maurel & Prom’s entire 20.07 percent holding in Seplat, comprising 120.4 million ordinary shares valued at 305 pence each.
The deal represents one of Nigeria’s most significant energy sector transactions this year and marks a notable shift toward greater indigenous ownership of the country’s strategic oil and gas assets.
According to M&P’s official announcement, the binding agreement was signed on December 30, 2025, after market close. The transaction includes an initial payment of $248 million, with the remaining balance of $248 million payable within 30 days, secured by an irrevocable letter of credit. An additional contingent consideration of up to $10 million may become payable based on Seplat’s share price performance over the next six months.
With this transaction, Heirs Energies now holds the commanding position among Seplat’s shareholders, surpassing institutional investors including Petrolin Group (13.77 percent), Sustainable Capital (9.7 percent), Professional Support (8.5 percent), and Allan Gray Investment Management (5.61 percent).
Strategic significance for both parties
For Elumelu, the banking magnate turned energy investor, the acquisition advances his long-standing vision of African ownership and management of the continent’s natural resources.
“This acquisition reflects our strong belief in Africa’s ability to own, develop, and responsibly manage its strategic resources,” Elumelu said. “It is a long-term investment in Nigeria’s and Africa’s energy future.”
Olivier de Langavant, CEO of M&P’s, reflected on the company’s 15-year journey with Seplat: “We are incredibly proud to have supported Seplat’s journey over the last 15 years and its transformation into a leading energy company in Nigeria across both oil and gas. This investment has also proven to be a great success for M&P, delivering very strong returns since inception in 2010.”
De Langavant explained that M&P is now pivoting to focus more directly on oil and gas asset investments, saying the company plans to “accelerate” this growth strategy.
He also expressed confidence in the transfer to Heirs Energies, a subsidiary of Heirs Holdings, describing them as “another strong, long-term shareholder.”
M&P was one of Seplat’s three founding shareholders in 2010 and remained its largest shareholder until this transaction, playing a key role in the company’s development into a leading Nigerian energy player with operations across both oil and gas sectors.
The deal was financed with backing from two prominent pan-African financial institutions – the African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC) – demonstrating the growing capacity of African lenders to support major transactions.
Heirs Energies emphasised that this African-led financing underscores “Africa’s capacity to finance its own deals.”
Herbert Smith Freehills Kramer and Morgan Stanley acted as legal and financial advisers to M&P on the transaction.
Seplat’s assets, production
Seplat Energy represents a substantial addition to Heirs Energies’ portfolio. The company boasts 2P reserves of 1.043 billion barrels of oil equivalent as of December 2024 and maintains working interest production of 135.6 thousand barrels of oil equivalent per day as of October 2025.
The acquisition positions Heirs Energies, which only began operations in 2021, alongside one of Nigeria’s most established independent producers. The company already operates Oil Mining Lease (OML) 17 in the Niger Delta, producing over 50,000 barrels of oil daily and 120 million cubic feet of gas, with reserves exceeding 1.5 billion barrels of oil and 2.5 trillion cubic feet of gas.
Filling the gap left by IOCs
The transaction comes at a pivotal moment for Nigeria’s energy sector. International oil giants, including Shell, ExxonMobil, and Chevron have been steadily reducing their onshore Nigerian operations, creating opportunities for domestic companies to acquire mature assets.
Nigeria, Africa’s largest crude producer, has faced challenges attracting foreign investment due to regulatory uncertainty, security issues in oil-producing regions, and delays in implementing comprehensive petroleum industry reforms. The Heirs Energies deal signals growing confidence among indigenous investors willing to step into this space.
Industry analysts view the acquisition as evidence of sustained belief in Nigeria’s energy sector despite global momentum toward transitioning away from fossil fuels and the operational challenges facing the country’s oil industry.
Elumelu built his fortune in banking before diversifying through his investment vehicle, Heirs Holdings, into energy, power, and other sectors across multiple African countries. He has consistently advocated for increased African control of continental resources.
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