Oando Plc has accelerated its upstream growth strategy, posting stronger production and improved operational efficiency in the first half of 2026 as investments in drilling, asset optimisation and well restoration translated into higher earnings and reinforced its ambition to double production over the medium term.
The indigenous energy company reported a 16 per cent increase in average daily hydrocarbon production to 42,789 barrels of oil equivalent per day (boepd) during the six months ended June 30, 2026, supported by improved facility reliability, new wells and the restoration of previously shut-in assets.
The operational gains helped drive a 20 per cent increase in revenue to N2.1 trillion, while profit after tax rose 8 per cent to N68.6 billion, according to the company’s unaudited financial results released on Tuesday.
The performance marks a significant milestone for Oando following the integration of its expanded upstream asset portfolio, with management indicating that the business is beginning to realise the operational and financial benefits of one of Africa’s largest recent upstream acquisitions.
Gross profit rose by 331 per cent to N101 billion, reflecting improved production volumes, lower operating costs and cost optimisation initiatives that reduced expenditure on logistics, transport, services and information technology.
The company’s upstream subsidiary recorded 92 per cent facility uptime, up from 85 per cent a year earlier, enabling higher output from its producing assets.
Crude oil production increased by 19 per cent to 12,358 barrels per day, while gas production rose 14 per cent to 28,497 boepd. Natural gas liquids output also climbed 16 per cent to 1,935 boepd.
The improved production performance was driven by successful drilling activities, restoration of 12 previously inactive wells and sustained improvements across Oil Mining Leases (OMLs) 60 to 63.
Operational efficiency also translated into lower production costs, with operating expenses declining 18 per cent to $16.83 per barrel of oil equivalent, strengthening margins despite continuing volatility in global energy markets.
Beyond upstream operations, Oando’s trading division expanded crude marketing activities, recording a 2.1 per cent increase in trading volumes to 13.15 million barrels, supported by stronger crude offtake programmes and increased sourcing from marginal field operators.
The company generated N179.5 billion in operating cash flow during the period, improving liquidity as it advances a broader capital restructuring programme designed to strengthen its balance sheet and fund future expansion.
Group Chief Executive Wale Tinubu said the first half of the year represented an important turning point for the company after two years of integrating newly acquired assets and improving operational performance.
He said investments in asset integrity, security, drilling and well intervention had significantly improved production reliability while positioning the company for sustained output growth.
The company has intensified drilling activities across its operated and non-operated assets, completing two development wells, with additional wells currently under development and a second drilling rig mobilised to accelerate field activities.
An expanded programme involving about 100 rig-less well intervention projects is also planned this year to restore production, sustain output and offset natural decline across its asset portfolio.
Oando reaffirmed full-year production guidance of 40,000 to 50,000 boepd, while outlining a medium-term strategy to raise production to approximately 100,000 boepd through the development of 62 identified wells supported by 55 planned well intervention projects.
To finance the next phase of growth, the company said it will continue pursuing its rights issue and a $1.5 billion multi-instrument capital raising programme aimed at strengthening its financial position, improving working capital and enhancing funding flexibility.
The stronger performance comes as Nigeria’s upstream oil producers continue to expand output despite operating challenges. Industry peers also reported production growth during the period, with Seplat Energy increasing average production by 4 per cent to 139,509 boepd, while Aradel Holdings delivered a sharp rise in production following its asset expansion programme.
