Nigerian energy firm Oando Plc is seeking to raise up to $750 million in fresh capital this year to fund an aggressive drilling campaign aimed at boosting production by as much as 300 percent, according to Chief Executive Officer Wale Tinubu. The company, which currently produces just over 32,000 barrels of oil equivalent per day based on its 2025 fiscal performance, plans to drill as many as 100 wells to unlock additional value from its existing assets. This expansion will focus on oil fields acquired from international majors like ConocoPhillips and Eni, as global oil companies continue to divest from Nigeria’s onshore sector.
The capital raise comes amid growing investor interest in African oil and gas assets, driven by tightening global energy markets and geopolitical disruptions, including the ongoing conflict involving Iran. Tinubu emphasized that Africa is now seen as a relatively stable investment destination compared to volatile regions like the Middle East and Eastern Europe. He noted that global supply chain disruptions have increased demand for Nigerian crude, especially in Asian markets looking for alternatives to Middle Eastern supply routes affected by tensions around the Strait of Hormuz.
Oando Plc is adapting to a changing financing landscape, as European banks have largely withdrawn from funding hydrocarbon projects due to climate policies. The company is now turning to regional financial institutions such as the African Export-Import Bank and the African Finance Corporation, as well as global commodity traders including Vitol, Trafigura, Glencore, and Mercuria. Additionally, the company’s board approved a multi-instrument issuance programme of up to $1.5 billion in August, allowing flexibility to access debt or equity markets as conditions evolve.
Beyond Nigeria, Oando Plc has expanded into Angola and is exploring opportunities in Ghana and Ivory Coast as part of a broader regional growth strategy. Tinubu stressed the importance of mobilizing domestic capital, including pension funds, to support large-scale energy investments across Africa. He also highlighted that ongoing geopolitical tensions will continue to shape global energy security, keeping West Africa’s hydrocarbon reserves in high demand.
Domestically, Nigeria is reaping benefits from shifting global supply chains, with the commissioning of the 650,000 barrels-per-day Dangote Refinery significantly boosting refining capacity. Tinubu confirmed that fuel imports are now limited to price testing or maintenance periods, a major shift from Nigeria’s past reliance on imported refined products. As global energy markets remain volatile, Oando Plc’s expansion plans position Nigeria to play a more prominent role in meeting international demand.
Leave a Comment