Nigerian oil magnate Wale Tinubu’s Oando to double production with Eni deal

Nigerian oil magnate Wale Tinubu-led Oando Plc, a prominent integrated energy solutions provider, expects to double its oil equivalent output to 50,000 barrels per day upon finalizing its landmark deal with energy giant Eni.

Oando’s expansion plans under Wale Tinubu revealed

This projection, disclosed by Chief Operating Officer Alex Irune to S&P Global Commodity Insights in a recent interview, comes with the expectation of further scaling up to 100,000 barrels daily by 2029 through new drilling and security improvements.

The disclosure follows the announcement eight months ago of a historic agreement with Eni for the acquisition of 100 percent of Nigerian Agip Oil Company Limited (NAOC Ltd.).

The proposed deal, awaiting ministerial consent and regulatory approvals, would elevate Oando’s stake in OMLs 60, 61, 62, and 63 from 20 percent to 40 percent. This reflects a shift in Nigeria’s oil and gas sector, with indigenous firms taking over from departing International Oil Companies (IOCs).

Eni’s stake estimated at $500 million

Irune, in a recent interview, downplayed concerns about approval delays. He stated that the focus is on “ensuring the country isn’t materially impacted” and that “indigenous players are able to take advantage of this opportunity.” Oando, poised to become a major domestic producer, is “on track” to close the deal this quarter, Irune added.

S&P Global Commodity Insights estimates the acquisition value at $500 million. It covers four oil-producing blocks (OMLs), a joint venture with the Brass terminal, onshore exploration concessions, and power plants. Eni currently holds a 20 percent operating stake alongside Oando and the Nigerian National Petroleum Company Limited (NNPC), which holds the remaining 60 percent.

Tinubu: A key player in Nigeria’s energy landscape

Wale Tinubu has been instrumental in transforming Oando into a multinational energy player across the upstream, midstream, and downstream sectors. The company’s dual listing on the Nigerian and Johannesburg Stock Exchanges underscores its regional and global reach.

Tinubu’s influence extends beyond Oando’s direct operations. Through Ocean and Oil Development Partners (OODP), co-owned with Omamofe Boyo, he indirectly holds a significant 66.67 percent stake in Oando, solidifying his position in Nigeria’s energy sector.

Earlier this year, Tinubu participated in the Guyana Energy Conference, highlighting Africa’s potential in the global energy market. He emphasized the importance of fostering favorable environments for the oil and gas industry’s growth.