Robust financials, NAOC acquisition, and a dual-track upstream strategy position Africa’s energy giant for accelerated performance.
Oando PLC, Africa’s leading integrated energy company listed on the Nigerian Exchange Group (NGX) and Johannesburg Stock Exchange (JSE), has announced strong audited full-year results for 2024, reporting a 44% increase in revenue to ₦4.1 trillion, up from ₦2.9 trillion in 2023. The company also posted a 267% surge in profit-after-tax to ₦220 billion, underpinned by strategic acquisitions and operational enhancements across its energy portfolio.
The standout moment of the year was Oando’s successful acquisition and integration of the Nigerian Agip Oil Company (NAOC), a milestone that capped a decade-long strategic ambition to deepen its upstream footprint. The move significantly reshaped the company’s asset profile, doubling its working interest in key oil blocks (OML 60–63) from 20% to 40% and expanding its 2P reserves from 500 million barrels of oil equivalent (boe) to 1 billion boe.
“2024 was a defining year for Oando,” said Group Chief Executive, Wale Tinubu. “The NAOC acquisition signals our evolution into a dominant upstream operator. We are now better positioned to take advantage of Nigeria’s evolving energy landscape and to deliver value across the board.”
Upstream Expansion and Operational Gains
Oando reported a modest 3% rise in average daily production to 23,727 barrels of oil equivalent per day (boepd). This included a 27% jump in crude oil output to 7,558 barrels of oil per day (bopd). However, natural gas production slipped by 5% to 16,013 boepd, while natural gas liquids (NGL) dropped by 35% to 156 bopd.
The company’s 2P reserves climbed by 95% year-on-year to 983 MMboe, achieving a 188% reserves replacement ratio—evidence of the value accretive impact of the NAOC acquisition. Operational uptime stood at an impressive 86%, helping to stabilize production and minimize losses.
Looking ahead, Oando has set a production guidance of 30,000 to 40,000 boepd in 2025. This is part of a broader plan to ramp up production to 100,000 bopd and 1.5 trillion cubic feet (tcf) of gas by 2029. To reach these targets, the company will deploy a dual-track upstream strategy, combining rig-less interventions and well workovers with an aggressive drilling programme.
Downstream Slowdown Amid Market Shifts
In contrast to its upstream gains, Oando’s downstream operations faced headwinds. The trading subsidiary sold 20.7 million barrels of crude oil in 2024—a 37% decline from the previous year. Refined product volumes also fell sharply by 64% to 599 kilometric tons (kMT), driven by structural shifts in the domestic oil market and macroeconomic challenges affecting local demand.
Renewable Push Gains Ground
Oando also advanced its renewable energy agenda, with its electric mass transit initiative making measurable strides. By year-end 2024, the program had covered over 121,000 kilometers, transporting more than 205,000 passengers, displacing 163,546 kilograms of CO₂, and saving over 60,000 litres of diesel.
The company signed memoranda of understanding (MoUs) for wind energy projects with Cross River and Edo States, and launched a geothermal feasibility study in partnership with the Nigerian National Petroleum Company (NNPC) to assess the conversion of mature wells into renewable energy assets.
Sectoral Shift: Indigenous Players Rise
Oando’s robust performance comes at a time when local players are taking center stage in Nigeria’s oil and gas sector, following a wave of International Oil Company (IOC) divestments. Indigenous operators like Seplat and Aradel also posted significant revenue increases—₦1.65 trillion (137% YoY) and ₦581.2 billion (162% YoY) respectively—signaling a shift in sector leadership.
These developments have far-reaching implications for Nigeria’s economy. Indigenous firms bring contextual insights and are better equipped to manage onshore and shallow water assets, which could result in more localized job creation, capacity building, and tax revenues that stay within the country.
Outlook: 2025, A Year of Execution
With its portfolio now firmly bolstered by the NAOC acquisition, Oando is setting its sights on operational optimization in 2025. Key focus areas will include:
- Unlocking acquisition synergies
- Revamping security measures to tackle oil theft
- Cost and balance sheet restructuring
- Enhancing operational efficiency
- Leveraging technology for improved productivity
“Our goal is not just production growth,” Tinubu affirmed, “but creating sustainable value, shared prosperity, and positioning Oando as a trailblazer in Africa’s energy transition.”
Despite uncertainty around global oil demand and price volatility, Oando’s forward-looking strategy—anchored on execution, innovation, and resilience—signals its intent to remain a dominant force in Africa’s energy future.
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