Oando targets 100,000 boepd as 62 wells support production growth 

Oando Plc, one of Nigeria’s top oil and gas companies led by Wale Tinubu, is targeting production of about 100,000 barrels of oil equivalent per day in the medium term as it advances a development program built around 62 wells and 55 planned well interventions. 

The company said its immediate focus is completing a seven-well drilling program and a portfolio-wide well intervention campaign while working toward production of about 50,000 boepd in 2026.

Oando disclosed the plans in its unaudited half-year 2026 results, which showed average production increased 16% year over year to 42,789 boepd in the first six months of the year.

Oando advances seven-well drilling program

Oando said two land development wells had been drilled and completed during the period, while a third land well was being drilled. A second drilling rig was also being mobilized to support activity across its operated assets. 

Alongside drilling, the company is carrying out a programme of rigless well interventions designed to restore output from existing wells, maintain production levels and limit the impact of natural field decline. 

“Looking ahead in 2026, our priorities remain firmly centered on completing our seven-well drilling programme and portfolio-wide well intervention campaign while delivering production of circa 50,000 boepd,” Tinubu said. 

“Beyond 2026, our identified inventory of 62 development wells, supported by 55 planned well interventions, provides a clear pathway toward our medium-term production ambition of approximately 100,000 boepd,” he said. 

The production gains have also come with lower operating costs. Oando’s production operating cost fell 18% to $16.83 per barrel of oil equivalent from $20.62 per boe in the first half of 2025. 

The company attributed the decline to lower transport, logistics, services and information technology costs, as well as higher production spread across a largely fixed field-cost base. 

Revenue, profit increase 

Oando maintained its 2026 production guidance of between 40,000 boepd and 50,000 boepd. Capital expenditure is expected to range from $90 million to $100 million, with spending directed mainly toward short-cycle upstream projects. 

The company’s expanded upstream asset base has increased the number of projects available for development. Oando said its focus is now on converting those assets into higher production while maintaining cost discipline and improving cash flow. 

Revenue rose 20% to N2.1 trillion ($1.54 billion) in the first half, from N1.7 trillion ($1.25 billion) a year earlier. Profit after tax increased 8% to N68.6 billion ($50.43 million), while operating cash generated during the period reached N179.5 billion ($131.96 million). 

Tinubu said Oando also plans to raise funds and restructure its balance sheet as it seeks to improve liquidity and provide financing for its development plans. 

“Furthermore, we shall execute an intensive fundraising and balance sheet restructuring programme to optimise our capital structure, strengthen our financial position, improve working capital, enhance financial flexibility and ensure the business is appropriately funded to accelerate growth and maximise long-term shareholder value,” he said. 

Oando’s upstream expansion

Oando has expanded its position in Nigeria’s oil and gas industry, with interests spanning upstream exploration and production, midstream infrastructure, trading and other energy businesses. 

The company is listed on the Nigerian Exchange and Johannesburg Stock Exchange. Its roots date to the 2003 rebranding of Unipetrol. Tinubu’s investment vehicle, Ocean and Oil Development Partners, holds a controlling 66.67% stake in Oando.

With drilling, well interventions and cost controls now at the centre of its upstream plans, Oando is seeking to turn its enlarged asset base into higher production and stronger cash generation.