Table of Contents
Key Points
- Oando raised crude oil production by 50 percent within three months of acquiring Nigerian Agip Oil.
- Deal with Eni sees Oando take full control of Nigerian Agip Oil for $783 million.
- Oando targets daily production of 100K barrels of oil and 1.4 billion cubic feet of gas by 2027.
Oando ramps up oil production by 50 percent in under 100 days
Oando Plc, one of Nigeria’s largest indigenous energy companies, has achieved a significant milestone by increasing its crude oil production by 50 percent less than 100 days after finalizing its $783 million acquisition of the Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni.
The acquisition, which was completed in August 2024, gave Oando full control of NAOC's production operations, upstream assets, and joint venture interests. The deal has catapulted Oando into a stronger position in Nigeria’s energy sector, with enhanced operational capacity and control over vital production resources.
Dr. Ainojie Irune, Managing Director of Oando Energy Resources Nigeria Limited, made the announcement during a high-level meeting with Nigerian National Petroleum Corporation Limited (NNPCL) executives, including Group Chief Executive Officer Mele Kyari. Dr. Irune attributed the production surge to the seamless integration of Oando's existing operations with NAOC’s legacy systems.
“In less than 100 days since the acquisition, we have been able to increase our production output by almost 50 percent. This could not have been achieved without the support of NNPC,” Dr. Irune stated.
The rapid production increase was facilitated by the merger of previously fragmented joint ventures into two fully functional and cohesive production units. This reorganization created a more efficient production process, allowing Oando to maximize capacity.
The expanded production capacity enhances Oando’s competitiveness in Nigeria’s oil and gas industry, positioning it to rival international producers. The development also strengthens Nigeria's local content initiative by promoting indigenous participation in the sector.
Oando targets 100,000 barrels per day by 2027
Oando Plc has set an ambitious goal of producing 100,000 barrels of oil per day (bpd) by 2027, alongside 1.3 to 1.4 billion cubic feet of gas production daily. This goal is a key part of Oando’s long-term strategy following its acquisition of NAOC.
Dr. Ainojie Irune revealed this production target at the NNPCL meeting, where he highlighted the strategic benefits of the acquisition. By integrating NAOC’s upstream assets, processing plants, and other infrastructure with Oando’s existing operations, the company aims to achieve significant production growth in the next three years.
NNPCL Group CEO Mele Kyari called the acquisition a landmark deal, stating, "Taking over the interests from Eni in this joint venture is a positive development for our industry and country. It signifies indigenous companies’ ability to play a bigger role in big assets and aligns with the national aspiration in the energy industry.”
Oando’s enhanced capacity and ambitious production goals underscore its emergence as a leading force in Nigeria’s oil and gas sector. The deal also supports Nigeria’s push for greater indigenous participation in the energy industry.
Oando's transformation: From petroleum marketer to energy powerhouse
Oando Plc, originally founded as Unipetrol Nigeria in 1956, has undergone significant transformation under the leadership of Group Chief Executive Wale Tinubu. Recognized globally for his business acumen, Tinubu led the shift from a petroleum marketing company to an integrated energy powerhouse.
With strategic acquisitions like NAOC, Oando is solidifying its role as a key player in Nigeria's oil and gas industry. The acquisition grants Oando access to valuable upstream oil and gas blocks, production facilities, and joint venture agreements, allowing the company to boost its production capacity while reducing reliance on third-party suppliers.
This latest move positions Oando to play a leading role in Nigeria’s energy sector, bolstering the country's economic development and promoting local participation in the oil and gas industry.
