Oando nears $500 million market cap on rising oil revenue outlook

Lagos-based Oando Plc, one of Africa’s largest integrated energy groups, has seen its market capitalization climb back toward the $500 million mark as stronger oil-linked earnings expectations and renewed investor interest lift sentiment around the stock on the Nigerian Exchange (NGX).

The move follows comments from Group Chief Executive Officer Wale Tinubu, who said the company is benefiting from shifting global crude flows linked to geopolitical tensions in the Middle East. Speaking on the sidelines of Africa CEO Forum in Kigali, he cited Gulf disruptions and said confidence in Middle East supply stability has weakened in recent months also.

Oando shares rise 13 percent

Those remarks were followed by a sharp response in the market. Oando’s share price rose more than 13 percent, pushing its market capitalization to N655.14 billion ($477.5 million). That move placed the company among the mid-tier group of listed firms on the NGX by valuation, reflecting a rebound in investor positioning rather than a structural re-rating of the business.

The latest gains also come as global crude flows remain sensitive to developments around key shipping routes such as the Strait of Hormuz, where periodic tensions have kept traders cautious. Tinubu said pricing in oil markets continues to reflect a premium for supply risk, although he noted that such conditions tend to shift quickly as geopolitical conditions evolve.

For Oando, the near-term benefit has been stronger demand signals from customers in Europe and parts of Asia, where buyers have looked to diversify supply sources. The company operates across Nigeria’s Niger Delta and has spent years building out its footprint across upstream, midstream, and downstream segments of the oil and gas value chain.

Oando expands upstream to 14 assets

Since its rebranding from Unipetrol in 2003, Oando has expanded its infrastructure base, including pipelines, storage terminals, and gas processing assets. Through Ocean and Oil Development Partners, Tinubu holds a controlling 66.67 percent stake in the company, giving him significant influence over strategy and capital allocation.

In March, Oando secured a production sharing contract for Block KON 13 in Angola through its subsidiary Oando Exploration and Production Angola Ltd., marking its first operated international upstream venture. The deal, struck with Angola’s National Agency for Petroleum, Gas and Biofuels, gives Oando a 45 percent operating interest alongside partners.

Oando now holds upstream interests in 14 assets across Nigeria and São Tomé and Príncipe, covering more than 22,000 square kilometers. Average production stood at 32,500 barrels per day in 2025, with management targeting additional output through new drilling activity.

Oando plans seven-well drilling campaign

Wale Tinubu said Oando plans to drill seven wells before the end of the year, a move expected to add roughly 10,000 barrels per day to production once completed. Looking ahead, he said the company expects oil prices to remain in the $70 to $80 range even after current geopolitical tensions ease, arguing that supply recovery from affected producers will take time.

To support expansion and future acquisitions, Oando is also preparing a capital raise of up to $750 million over the course of 2026, using a mix of debt and limited equity issuance. The company continues to review opportunities across West Africa, with interest also extending to Guyana and Suriname as it looks to broaden its upstream exposure.