The Nigerian National Petroleum Corporation (NNPC) and Heirs Energies on Tuesday signed a Gas Flare Commercialization Agreements in a significant move to advance Nigeria’s gas commercialisation efforts.
The event, which was part of the Nigerian Gas Flare Commercialization Programme (NGFCP) and approved non-NGFCP frameworks, represents a crucial step towards Nigeria’s energy transition goals.
The signing ceremony, held at Heirs Energies headquarters in Lagos, symbolized the transition from regulatory approvals to tangible commercial execution.
Through this initiative, flare gas volumes from OML 17 will be captured and deployed for various productive uses such as power generation, industrial applications, and the production of LPG and CNG.
The agreement is expected to significantly reduce routine gas flaring and convert previously wasted resources into valuable energy for the Nigerian economy.
At the ceremony, Engr. Seyi Omotowa, Chief Upstream Investment Officer of NUIMS, representing NNPC Limited, emphasized that flare gas commercialisation was not merely a compliance measure, but a strategic pathway to enhancing energy availability, fostering gas-based industrialisation, and reinforcing Nigeria’s position as a responsible energy producer.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), represented by Mr. Ojo Olalekan Ezekiel, Senior Manager at NUPRC, also reiterated the regulatory body’s commitment to supporting flare gas commercialisation initiatives.
Ezekiel acknowledged the partnership’s role in achieving national energy and emission reduction goals and noted that the collaboration with offtakers such as AUT Gas, Twems Energies, GPID, PCCD, and AGTC would be instrumental in advancing the project.
Heirs Energies’ CEO, Osa Igiehon, highlighted the company’s gas-led strategy, which focuses on creating long-term value for Nigeria.
“Gas sits at the heart of Nigeria’s development journey,” Igiehon said, highlighting the company’s efforts to strengthen domestic energy supply while ensuring responsible and sustainable operations.
Key highlights of the agreement:
- Increased gas deliverability: The successful completion of the flare gas commercialization agreements allows for the strategic deployment of flare gas for power generation, industrial applications, LPG, and CNG.
- Commitment to environmental stewardship: This initiative is in line with Nigeria’s energy transition objectives, which focus on reducing emissions while enhancing energy availability.
- Enhanced Partnerships: The agreement brings together NNPC, Heirs Energies, and various private sector offtakers to ensure that Nigeria’s gas resources are utilized responsibly and profitably.
- Strategic impact: The OML 17 project plays a pivotal role in advancing Nigeria’s gas-to-power initiatives, contributing to enhanced power generation across the country.
The signing ceremony reflects Nigeria’s continued commitment to improving its energy landscape and its ambition to become a leading hub for gas commercialization in Africa.
As the flare gas offtakers move into the next phase of the project, full-scale implementation is expected to begin soon, delivering economic, environmental, and social benefits for Nigeria.
Backstory
OML 17, operated by Heirs Energies, has long been a focal point for Nigeria’s gas development agenda.
Since Heirs Energies took over the joint venture in 2021, the company has made significant strides in revitalizing the asset.
Through a series of brownfield excellence interventions, Heirs Energies has turned OML 17 into a key source of both oil and gas production, with gas now being positioned as a core value stream.
The successful rigless recompletion of a key non-associated gas well in 2025 doubled the JV’s gas output, significantly improving Nigeria’s gas availability for domestic power generation and industrial use.
What you need to know
Heirs Energies Limited is a leading indigenous energy company focused on responsible oil and gas production, gas commercialization, and long-term value creation aligned with Nigeria’s development priorities.
As operator of the OML 17 Joint Venture, Heirs Energies has contributed significantly to Nigeria’s gas development strategy through brownfield excellence and strong host-community partnerships.
- In 2025, the company reached a gas production peak of 135 million standard cubic feet per day (MMscf/d) from OML 17, following the restoration of the Agbada-67 well and deployment of rigless through-tubing technology.
- This breakthrough with NNPC Limited now supplies 45 MMscf/d of gas to Nigeria’s national grid.
Heirs Energies plays a pivotal role in Nigeria’s energy security and industrial growth, with gas supply to the Eastern Domestic Gas Market more than doubling to 135 MMscf/d.
- Power generation from plants in the eastern region has surged, with TransAfam Power Plant output increasing from 50 MW to over 180 MW, and aggregate power generation rising from 100 MW to 325 MW, peaking at 455 MW.
The company is also committed to social impact, supporting host communities with healthcare, education, and skills development initiatives. These efforts align with Nigeria’s Decade of Gas initiative and long-term energy transition goals.
The successful execution of the NGFCP and Non-NGFCP flare gas commercialization agreements marks a key milestone in turning waste into opportunity.
By converting flare gas into energy, Heirs Energies supports emission reduction, strengthens energy security, and enhances industrial growth, reinforcing Nigeria’s position as a leading energy producer in Africa.
