Oando Plc has reduced its oil production operating costs by 22 per cent to $15.39 per barrel of oil equivalent (boe) in the first nine months of 2026, compared with $19.67 recorded during the same period last year.
The company disclosed this in its unaudited financial results for the nine months ended September 2026, reporting improved production, higher facility uptime and stronger financial performance.
Oando’s average daily production rose by 14 per cent to 42,985 barrels of oil equivalent per day (boepd), up from the corresponding period of 2025.
The company attributed the lower production costs to improved efficiency in transportation, logistics, oilfield services and information technology, alongside increased output across its operations.
Facility uptime also improved to 96.1 per cent from 85 per cent, indicating better reliability of its production and evacuation infrastructure.
Commenting on the performance, Oando Group Chief Executive, Wale Tinubu, said increased investment and improved operational management had strengthened production efficiency and reduced operating costs.
He added that the company recorded zero fatalities and zero lost-time injuries during approximately 14.9 million working hours in the review period.
A breakdown of production showed that crude oil output increased by 12 per cent to 12,193 barrels per day, while natural gas production rose by 13 per cent to 28,689 barrels of oil equivalent per day. Natural gas liquids output also grew by 53 per cent to 2,103 barrels per day.
The production gains supported higher sales volumes, with crude oil sales increasing by 43 per cent to 3.97 million barrels, while natural gas sales rose by five per cent to 34.01 billion standard cubic feet. NGL sales also climbed by 90 per cent to 570,000 barrels.
Overall, exploration and production sales volumes increased by 21 per cent to 10.21 million barrels of oil equivalent.
Financially, Oando recorded a nine per cent increase in revenue to N2.78tn, while gross profit surged by 483 per cent to N174.5bn from N29.8bn in the corresponding period of 2025.
The company also returned to operating profitability, posting N159.7bn compared with an operating loss of N109.7bn a year earlier.
To sustain production growth, Oando invested N110.7bn in capital expenditure during the period, with significant funding directed towards drilling activities across its OML 60–63 assets.
The company said its seven-well drilling programme for 2026 was progressing, with two wells, Idu 6ST and Idu 15, completed and brought into production. It expects the programme to contribute an additional 16,000 to 20,000 barrels of oil equivalent per day in gross production.
Oando is targeting production of approximately 100,000 barrels of oil equivalent per day within the next four to five years.
For the full year, the company has projected production of between 40,000 and 45,000 barrels of oil equivalent per day, with capital expenditure estimated at $90m to $100m.
