Oando Raises Production Outlook to 45,000boepd by Year-End

By Adedapo Adesanya

Africa’s energy firm, Oando Plc, says it is targeting production of close to 45,000 barrels of oil equivalent per day by the end of 2026, as it boosts completion of its seven-well drilling programme.

The group made this known in its unaudited results for the nine months ended September 30, 2026, which contained outlook for the remainder of the year on Monday.

The group hinted that it has narrowed its full-year 2026 production guidance to 40,000–45,000 barrels of oil equivalent per day, building on robust operational delivery in the first nine months.

According to the company, average daily production in the period rose 14 per cent year-on-year to 42,985 barrels of oil equivalent per day, driven by growth across crude oil, gas and Natural Gas Liquids (NGL).

It said this is aided by 96.1 per cent facility uptime compared to 85 per cent in the same period of 2025, and a 22 per cent reduction in production operating costs to $15.39 per barrel of oil equivalent.

It further maintained a strong safety record with zero fatalities and zero Lost Time Injuries (LTI) across approximately 14.9 million hours worked, compared to one fatality in the same period of 2025.

“Our performance in the first nine months of 2026 demonstrates how diligent execution under our operatorship, supported by our renewed investment drive, is delivering greater efficiency, improved reliability, lower unit costs and ultimately higher production across our expanded upstream portfolio,”
Mr Wale Tinubu, group chief executive of Oando Plc, said.

He said revenue grew 9 per cent to N2.78 trillion, driven by higher crude liftings and gas sales, while gross profit surged by 483 per cent to N174.5 billion, adding that the group returned to profitability with an operating profit of N159.7 billion, compared to an operating loss of N109.7 billion in the nine months of 2025, and cash generated from operations reached N285 billion.

Total borrowings, he disclosed, declined to N2.16 trillion, 22 per cent below the peak at end-2024, reflecting the group’s ongoing deleveraging efforts.

Speaking on projections for the remaining days of the year, he said, “Our priorities are to progress the seven-well development programme, sustain operational reliability and strengthen shareholders’ funds through our impending equity raise. These initiatives are intended to reduce leverage, enhance our capacity to fund growth and support future shareholder distributions.

“The 2026 drilling programme across OMLs 60–63 has progressed steadily. Idu 6ST and Idu 15 have been completed and brought on stream, while workovers at Samabri 4T and Samabri 7T have been completed. Drilling is ongoing at Idu T and Samabri A50, with the final well, Ogbainbiri, scheduled to spud in December 2026.”

He stated that the drilling campaign is expected to add approximately 16,000 to 20,000 barrels of oil equivalent per day (gross) on completion, helping to sustain output, offset natural decline and keep the Group on track to achieve the upper end of its guidance at 45,000 barrels of oil equivalent per day by year-end.

He explained that the development is in line with its medium-term ambition of approximately 100,000 barrels of oil equivalent per day in the next four to five years.

The group expects full-year capital expenditure of approximately $90 million to $100 million, focused on high-impact, short-cycle upstream activities.