Oando to generate electricity from abandoned oil wells in Nigeria

Oando Energy Resources, a subsidiary of Oando Plc, one of  Africa’s largest integrated energy groups, plans to generate electricity from abandoned oil wells through a pilot geothermal-style power project as the Nigerian energy company seeks to expand clean power options and support the country’s gas-to-power drive. 

The company disclosed the plan during a meeting between its management and Power Minister Joseph Tegbe, where both sides discussed private-sector investment, domestic gas utilisation and opportunities to strengthen Nigeria’s electricity supply. 

Turning abandoned oil wells into power assets

Managing Director of Oando Energy Resources, Ainojie Irune, said the pilot project would convert abandoned oil wells across the company’s Joint Venture assets into sources of geothermal-style electricity. 

He said the initiative reflects the type of locally developed solutions needed to address Nigeria’s long-standing power challenges while making better use of existing energy infrastructure. 

“Oando Clean Energy was established five years ago to explore how Nigeria’s gas, solar, wind and hydro resources can work together to provide reliable and affordable electricity across Africa,” Irune said. 

He added that the company’s operations already contribute to the country’s power supply through the 480-megawatt Okpai Independent Power Plant, which supplies electricity to the national grid. 

According to Irune, the facility provides power for about 50 million Nigerians and represents a significant contribution to the country’s electricity network.

Gas remains central to industrial growth 

Irune said expanding domestic energy capacity remains critical to Nigeria’s economic development, particularly as industries require more reliable electricity to grow. 

“Domestic capacity is not only an imperative now, but it is also the only way we get out of an economic crisis,” he said. 

He added that improving infrastructure and increasing electricity access would require sustained cooperation between government and private companies. 

Tegbe welcomed Oando’s continued engagement with the ministry, saying stronger collaboration with energy companies would be important to achieving the government’s power sector goals. 

“We can talk about carbon credits, but in reality, it’s about the resources you have. You have to use them. That’s your advantage. Get it done in the cheapest, most efficient way possible. For me, it’s hydro, gas and solar,” the minister said. 

He also welcomed Oando’s offer of technical support, saying skills transfer and private-sector expertise would help strengthen public institutions and improve project delivery. 

“I look forward to that collaboration, and I believe the power sector will get to a point where we start to see real progress,” Tegbe said. 

Both parties agreed to deepen cooperation, with Irune stressing that Nigeria’s energy ambitions would require joint efforts from government and industry.

Oando expands energy portfolio

Oando, led by Nigerian energy executive Adewale Tinubu, has expanded its presence across Nigeria’s oil and gas industry, with operations spanning upstream exploration and production, midstream infrastructure and downstream services. 

The company, listed on the Nigerian Exchange Limited and Johannesburg Stock Exchange, traces its roots to its 2003 rebrand from Unipetrol. Tinubu’s investment vehicle, Ocean and Oil Development Partners, owns a controlling 66.67 stake in the company. 

Oando strengthened its upstream position in 2024 after completing the acquisition of Nigerian Agip Oil Company assets, increasing its production base and expanding its portfolio across Nigeria and São Tomé and Príncipe. 

The company’s upstream operations now include 14 assets covering more than 22,000 square kilometres. 

In March, Oando secured a production sharing contract for Block KON 13 in Angola through its subsidiary Oando Exploration and Production Angola Ltd. The agreement, signed with Angola’s National Agency for Petroleum, Gas and Biofuels, gives Oando a 45% operating interest alongside its partners. 

Energy expansion supports Africa strategy

Oando Plc reported a profit after tax of N204.81 billion ($150.23 million) for the full year ended Dec. 31, 2025, compared with N220.12 billion ($161.46 million) a year earlier. 

Revenue declined to N3.2 trillion ($2.35 billion) from N4.1 trillion ($3 billion) in 2024, reflecting trading optimisation and the company’s exit from lower-margin premium motor spirit activities. 

Oando Energy Resources currently produces about 23,937 barrels of oil equivalent per day, with its strategy focused on oil and gas production, gas-to-power integration and expansion across African markets.

The planned Oando electricity project from abandoned oil wells adds another layer to Nigeria’s effort to increase power supply while finding new uses for existing energy infrastructure.