Indigenous Oil Firms Tweak Growth Strategies With Fresh Stake Deals

A squall of divestment and investment acquisition by forward looking indigenous oil and gas companies in Nigeria ended 2025 with projections of growth opportunities in the new year.

LEADERSHIP energy monitored with enthusiasm the gale of asset purchases and projections from targeted field optimisation.

Towards the end of the year Savannah Energy Plc disclosed the intended entry into a relationship agreement with its largest shareholder, NIPCO Plc (NIPCO), a diversified Nigerian energy conglomerate, in connection with NIPCO increasing its shareholding in Savannah.

NIPCO proposes to acquire further existing Ordinary Shares in the Company through a series of secondary market transactions.

In connection with these proposed acquisitions, the Company intends to terminate the off-market share buyback agreement announced on October 22, 2025 and approved by shareholders on November 28, 2025.

Following termination of the Buyback Agreement, NIPCO proposes to acquire 118,083,927 of the 143,565,582 Ordinary Shares that were subject to the Buyback Agreement, which would increase NIPCO’s stake to approximately 25 per cent of the Company’s current issued share capital.

Savannah is a major supplier of gas for domestic power projects in Nigeria and aims to strongly grow this business over the course of the coming years.

Savannah is now a leading energy producer in Nigeria and, via its controlling interest in the Accugas midstream business, the company currently provides gas to power stations accounting for over 10 per cent of Nigeria’s power generation capacity and operates one of the largest privately-owned gas transportation and distribution system in sub-Saharan Africa.

Similarly, Heirs Energies, has completed the acquisition of the entire 20.07 per cent equity stake (120.4 million ordinary shares) previously held by Maurel & Prom S.A. in Seplat Energy Plc (Seplat Energy) at a price of GBP3.05 pence per share, valuing the transaction at approximately US500 million.

The acquisition represents a further milestone in Heirs Energies’ long-term strategy to strengthen indigenous participation in strategic assets and accelerate sustainable energy development and security for Nigeria and Africa.

Commenting on the transaction, Tony Elumelu, Chairman of Heirs Energies, said: “This acquisition reflects our strong belief in Africa’s ability to own, develop, and responsibly manage its strategic resources. It is a long-term investment in Nigeria’s and Africa’s energy future, and aligns with our mission to drive energy security, industrialization, and shared prosperity. Seplat Energy has built a resilient, well-governed platform with compelling long term prospects, and we are pleased to support its continued growth and value creation for all stakeholders.”

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 Limited is Africa’s leading indigenous-owned integrated energy company, committed to meeting Africa’s unique energy needs, while aligning with global sustainability goals.  Having a strong focus on safe operations, innovation driven growth, environmental responsibility, and creating shared prosperity for all stakeholders, Heirs Energies leads in the evolving energy landscape and contributes to a more prosperous Africa. Heirs Energies operates OML 17 in the Niger Delta, producing over 50 thousand barrels of oil per day (50 kbopd) and 120 million cubic feet of gas per day (120 mmcfd), with reserves base of over 1.5 billion barrels of oil (MMBo) and 2.5 trillion cubic feet of gas (Tcf). Since its debut in 2021, Heirs Energies has established itself as the brownfield excellence leader, having successfully addressed all the challenges that confronted onshore operations in Nigeria and has been a critical catalyst for the rejuvenation of safe and reliable onshore operations in the Niger Delta. Heirs Energies is a leading gas producer and supplier into Nigeria’s domestic gas market, providing fuel for over 400 megawatts of electricity generation, powering millions of homes, businesses and factories.

Seplat Energy Plc is a Nigerian independent energy company focused on oil and gas exploration, production, and gas processing, primarily in the Niger Delta. It is listed on both the Nigerian Exchange and the London Stock Exchange and is as a key player in Nigeria’s energy transition.

Seplat Energy has, as at 31 December 2024, 2P reserves of 1.043 billion barrels of oil equivalent (MMBoe) and working interest production 135.6 kboepd as at 31 October 2025.

Another, interesting acquisition, is by Aradel Holdings Plc, an indigenous integrated energy company.

The company’s wholly-owned subsidiary, Aradel Energy Limited, successfully completed the acquisition of an additional equity interest in ND Western Limited, following the fulfilment of all regulatory and contractual conditions precedent.

The transaction, previously announced on 24th October 2025, involved the acquisition of a 40% equity interest in NDW from Petrolin Trading Ltd.

With the completion of the transaction, Aradel Energy Limited’s shareholding interest in NDW increased from 41.67 per cent to 81.67 per cent, and NDW has become a subsidiary of Aradel Energy Limited.

The acquisition also results in a material increase in Aradel’s aggregate shareholding in Renaissance Africa Energy Company Limited, increasing its total indirect ownership in the company from 33.3 per cent to 53.3 per cent.

The NDW holds a 45 per cent participating interest in OML 34, a producing Oil Mining Lease located in the Western Niger Delta and owns 50 per cent of the share capital of Renaissance Africa Energy Holding Company Ltd, the parent company of Renaissance Africa Energy Company Limited which operates the Renaissance Joint Venture.

This acquisition is consistent with Aradel’s long-term strategy of disciplined portfolio consolidation, asset base expansion, and sustainable value creation.

It further strengthens the Company’s position within Nigeria’s upstream oil and gas sector, enhances operational scale, and supports improved efficiency and resilience across the Company’s asset portfolio.

Commenting on the transaction, Adegbite Falade, chief executive officer of Aradel Holdings Plc,stated:“The completion of this acquisition represents a further step in the execution of our growth and consolidation strategy. Increasing our equity interest in ND Western reinforces Aradel’s position as a leading indigenous integrated energy company and enhances our ability to drive long-term value for shareholders through scale, operational efficiency, and portfolio optimization.

”The transaction was completed following the receipt of all requisite regulatory approvals, including approvals from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Federal Competition & Consumer Protection Commission (FCCPC) and is in compliance with all other applicable regulatory, governance, and disclosure requirements.