Oando Plc’s acquisition of Nigerian Agip Oil Company has boosted its financial and production performance. The company successfully upsized its Reserve Based Lending (RBL2) facility to $375 million, supported by Afreximbank and Mercuria, extending maturity to 2029. This increase reflects Oando’s strong progress in reducing debt—from $525 million in 2019 to $100 million by 2024—and its proven reserves valued at 1.0 billion barrels of oil equivalent. CEO Wale Tinubu described the upsizing as a key milestone in maximizing the value of Oando’s expanded asset portfolio.Oando’s joint venture holds extensive reserves with potential net cash flows exceeding $11 billion.
The upsized $375 million facility from Afreximbank and Mercuria will fund growth initiatives like drilling, infrastructure upgrades, and operational efficiency improvements. Oando aims to boost production to 100,000 barrels of oil and 1.5 billion cubic feet of gas per day by 2029. The refinancing follows Oando’s $783 million acquisition of Nigerian Agip Oil Company, adding significant assets including producing fields, pipelines, processing plants, and power stations. This refinancing reflects strong confidence in Oando’s growth strategy and expanded asset base.Oando Plc reported a record 267% increase in Profit After Tax for 2024, rising from N60 billion to N220 billion, driven by higher upstream production and FX gains. Revenue grew 44% to N4.1 trillion, and reserves nearly doubled to 983 million barrels of oil equivalent.
Average daily production rose 3% to 23,727 boepd, with crude output up 22% to 7,558 bpd. Oando also contributed $550 million to NNPC’s Project Gazelle to secure oil volumes.CEO Wale Tinubu called 2024 a defining year due to the successful acquisition and integration of Nigerian Agip Oil Company (NAOC), doubling their working interest in key assets and boosting reserves to 1 billion barrels. For 2025, Oando plans to focus on synergy realization, security improvements, cost optimization, balance sheet restructuring, operational efficiency, and technology adoption, aiming to reach 100,000 bopd and 1.5 bcf gas production by 2029 through rig-less interventions, well workovers, and an aggressive drilling program.Wale Tinubu expressed optimism about future opportunities, emphasizing Oando’s commitment to shareholder returns and leadership in Africa’s energy sector.
Capital expenditure dropped to N19 billion in 2024 from N45 billion in 2023, due to NAOC acquisition focus; development will increase in 2025. NGL production fell 35%, gas down 5%.Oando’s zero routine flaring program is on track for 2027, with 92% reduction achieved. Its clean energy efforts include electric mass transit covering 121,145 km, serving 205,152 passengers, cutting 163,500 kg CO₂, launching 50 new electric buses, and securing PET recycling commitments.Post-acquisition, Oando targets 30,000–40,000 boepd production, 25–35 million barrels crude trading, and 750,000–1 million MT refined products.
