Indigenous oil company Oando Plc has revealed plans to boost its oil production to over 100,000 barrels per day and achieve 1.3-1.4 billion cubic feet of gas production per day within the next three years. This growth projection follows the company’s acquisition of the Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni in a $783 million deal announced in August 2024.
Speaking during a meeting with Joint Venture (JV) partner Nigerian National Petroleum Company Limited (NNPC) in Abuja, Dr. Ainojie Irune, Managing Director of Oando Energy Resources Nigeria Limited, reported a significant increase in production:
Production Growth: A 50% rise in crude oil production within three months post-acquisition.
Integration Success: Improved operational synergy between the legacy companies of Oando and NAOC, reducing the JV structure from three parts to two.
Future Targets
Dr. Irune emphasized the company’s commitment to scaling operations, stating:
“We are excited about the future of this partnership. With NNPC’s support, we aim to increase 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.”
NNPC’s Support for Indigenous Players
Mele Kyari, Group Chief Executive Officer of NNPC Limited, lauded Oando’s acquisition as a positive development for Nigeria’s energy sector. He remarked:
The acquisition aligns with the national aspiration of empowering indigenous companies to manage major assets.
NNPC is committed to working closely with Oando to increase oil and gas production, enhancing Nigeria’s energy output.
Kyari expressed confidence in Oando’s ability to overcome industry challenges, citing the company’s leadership and capacity to navigate the joint venture successfully.
Industry Challenges and Collaborative Approach
Dr. Irune highlighted that while the oil and gas sector faces hurdles—including financial, security, community, and production integrity issues—collaborative efforts among stakeholders can create a sustainable and resilient industry.
“The challenges we have seen are not insurmountable. Rather, with the commitment and collaboration of all parties, we will overcome the current adversity to build a sustainable industry and economy,” he concluded.
Significance of the Partnership
This development underscores the increasing role of indigenous companies like Oando in Nigeria’s energy sector, boosting local capacity and contributing to national economic growth. With NNPC’s support, the partnership is expected to strengthen Nigeria’s position as a key player in the global oil and gas market.
