Nigerian energy company Oando is preparing to raise as much as $750 million this year to finance an extensive drilling programme aimed at sharply increasing its oil and gas output.
Chief Executive Officer Wale Tinubu said the company plans to drill up to 100 wells across its assets, a move expected to significantly lift production, especially from fields it acquired from international oil majors such as ConocoPhillips and Eni.
According to Tinubu, rising global energy prices and geopolitical tensions in the Middle East have changed how investors view African oil producers. He noted that the disruption of crude flows from the Gulf region has redirected attention to West Africa as a more stable supply source, improving investor appetite for projects in the region.
Oando currently produces just over 32,000 barrels of oil equivalent per day, but the planned drilling campaign could raise output several-fold if fully executed.
Tinubu explained that while European banks once played a major role in financing African hydrocarbon projects, many have stepped back due to climate-related policies. As a result, Oando is now turning to African and Middle Eastern financial institutions as well as global commodity traders for support, including the African Export-Import Bank, the African Finance Corporation, and trading houses such as Vitol, Trafigura, Glencore, and Mercuria.
Beyond its Nigerian operations, Oando has recently expanded into Angola and is studying potential opportunities in Ghana and Ivory Coast. Tinubu stressed that African countries should also mobilise domestic capital, including pension funds, to support large-scale energy investments.
Tinubu credited Nigeria’s 2021 petroleum sector reforms and recent economic policies introduced by President Bola Tinubu for improving the country’s investment climate. He also pointed to the operational start of the 650,000-barrel-per-day Dangote Refinery as evidence that Nigeria can add more value to its crude resources locally.
He noted that Nigeria’s need for petrol imports has reduced significantly, with imports now mainly required for price testing or during refinery maintenance periods.
Looking ahead, Oando plans to utilise more of its gas resources for petrochemical and fertiliser production, a move aimed at increasing value addition within Nigeria.
The company is also working to tidy up its financial reporting after previous delays in filing audited accounts with the Nigerian Exchange. Last year, Oando’s board approved a plan to launch a multi-instrument fundraising programme of up to $1.5 billion, which could support its broader expansion strategy.
Tinubu said ongoing global supply disruptions are likely to keep attention on West Africa’s oil reserves for years, even if geopolitical tensions ease.
