Oando Plc has announced a nearly 50% increase in crude oil production within three months, following its acquisition of the Nigerian Agip Oil Company (NAOC) from Italian energy firm Eni earlier this year.

The Managing Director of Oando Energy Resources Nigeria Limited, Dr. Ainojie Irune, shared this update during a meeting with its Joint Venture (JV) partners, Nigerian National Petroleum Corporation Limited (NNPCL), held in Abuja. The meeting, according to a statement issued by Oando on Sunday, was led by NNPCL’s Group Chief Executive Officer, Mele Kyari, and attended by other top executives, including Chief Financial Officer Adedapo Segun, Executive Vice President of Business Services Danladi Inuwa, and Executive Vice President of Upstream, Udobong Ntia.

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In August 2024, Oando announced its acquisition of a 100% stake in NAOC from Eni in a $783 million deal. Reflecting on the developments since the acquisition, Irune credited NNPCL’s support for the remarkable production increase and highlighted the successful integration of Oando and NAOC operations.

“Within just 100 days of the acquisition, we have increased our production output by almost 50%. This achievement would not have been possible without the support of NNPCL. We’ve seamlessly integrated the operations of both legacy companies, consolidating what used to be a three-part JV into two,” Irune said.

He reaffirmed Oando’s commitment to boosting production and enhancing operational efficiency.

“Our goal is 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. With NNPCL’s support, we are confident in achieving this milestone,” Irune added.

NNPCL’s Group CEO, Mele Kyari, congratulated Oando on the acquisition, calling it a significant step forward for Nigeria’s energy sector.

“The acquisition of NAOC’s assets by an indigenous company like Oando demonstrates local players’ growing capacity to manage large-scale operations. It aligns with our national aspirations for the energy industry,” Kyari said. He pledged NNPCL’s full collaboration with Oando to achieve increased oil and gas production.

Kyari also expressed optimism about the JV’s potential, stating, “We are confident in Oando’s ability to elevate the JV’s performance both in the short and long term.”

In his remarks, Irune emphasized the importance of collaboration in overcoming the industry’s challenges, which include financial, security, community, and production integrity issues.

“These challenges are not insurmountable. With commitment and collaboration from all stakeholders, we can overcome current adversities and build a sustainable industry that contributes to the economy,” Irune concluded.

This statement underscores Oando’s strategic focus on growth, operational excellence, and partnerships to strengthen Nigeria’s energy sector.

Oando PLC and Its Acquisition of NAOC you need to know

About Oando PLC: Oando PLC is a leading Nigerian energy company, operating across the entire energy value chain. It is listed on both the Nigerian Exchange Limited and the Johannesburg Stock Exchange.

Acquisition of NAOC: In August 2024, Oando acquired a 100% stake in the Nigerian Agip Oil Company (NAOC) from Italian energy firm Eni for $783 million. This acquisition increased Oando’s participating interest in key oil blocks and enhanced its infrastructure ownership, including pipelines, gas processing plants, and power plants.

Within 100 days of the acquisition, Oando boosted its crude oil production by nearly 50%.

• Oando’s total reserves increased by 98%, reaching over 1 billion barrels of oil equivalent.
• Oando aims 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.
• The Nigerian National Petroleum Corporation Limited (NNPCL) has been a key partner in this acquisition, supporting the integration of Oando and NAOC operations.

This acquisition aligns with Nigeria’s “Decade of Gas” initiative and strengthens Oando’s position in the Nigerian oil and gas sector.

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