Oando Boosts Oil Production by 50% in Three Months
Oando Plc has achieved a significant 50% increase in its crude oil production within three months, following its acquisition of the Nigerian Agip Oil Company (NAOC) from Italian energy firm Eni earlier this year. The announcement was made by the Managing Director of Oando Energy Resources Nigeria Limited, Dr. Ainojie Irune, during a meeting with its Joint Venture (JV) partner, Nigerian National Petroleum Corporation Limited (NNPCL) in Abuja.
The high-level meeting was attended by NNPCL’s Group Chief Executive Officer, Mele Kyari, alongside top executives, including Chief Financial Officer Adedapo Segun, Executive Vice President of Business Services Danladi Inuwa, and Executive Vice President of Upstream Udobong Ntia.
Oando acquired a 100% stake in NAOC in August 2024 in a $783 million deal, marking a transformative move for the company in Nigeria’s energy sector. Dr. Irune attributed the production surge to the seamless integration of NAOC’s operations with Oando’s legacy systems. He expressed gratitude for NNPCL’s support, noting that the JV has been streamlined from three operational units to two, facilitating greater efficiency.
He disclosed that the company’s production output has increased significantly since the acquisition. “Within less than 100 days, we have increased our production output by almost 50%. This could not have been achieved without the support of NNPCL. We are committed to further increasing production to over 100,000 barrels of oil per day and 1.3–1.4 billion cubic feet of gas per day within the next three years,” Irune said.
In response, NNPCL’s Group CEO Mele Kyari congratulated Oando on the successful acquisition of NAOC, describing it as a positive development for Nigeria’s energy industry. He emphasized the importance of indigenous companies managing significant assets, stating that Oando’s achievement aligns with national goals for energy security and economic development.
Kyari expressed confidence in Oando’s ability to drive the joint venture’s growth, pledging NNPCL’s continued collaboration to enhance oil and gas production. “We believe you will steer this partnership to success in both the short and long term,” Kyari said.
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Dr. Irune further acknowledged the challenges facing the oil and gas industry, including security, production integrity, and infrastructure. He emphasized the importance of collaboration and innovation to address these issues effectively, stressing that the commitment of all stakeholders is critical to building a sustainable industry and economy.
Oando’s accomplishment highlights its growing influence in Nigeria’s oil and gas sector and demonstrates the potential of strategic partnerships and indigenous expertise in driving the nation’s energy ambitions.
