Oando Targets $750 Million to Triple Oil Production

Nigerian energy giant Oando Plc has unveiled an ambitious plan to raise $750 million to fund an extensive drilling campaign. The primary goal of this capital injection is to boost the company’s oil output by a staggering 300%, moving from its 2025 average of 32,000 barrels of oil equivalent per day (boepd) to significantly higher volumes.

In an interview with Reuters, Oando CEO Wale Tinubu disclosed that the company is targeting the drilling of as many as 100 new wells. This aggressive expansion is designed to capitalize on shifting global energy dynamics that have made African hydrocarbon reserves increasingly attractive to international investors.

Africa as a “Safe Haven” for Investment

A key driver behind Oando’s strategy is the current geopolitical landscape. Tinubu noted that ongoing conflicts in the Middle East and the fallout from the 2022 invasion of Ukraine have fundamentally altered investor sentiment. While Africa was once viewed as a high-risk environment, it is now being seen as a relatively stable alternative for energy supply.

“Africa is very, very peaceful compared to these regions,” Tinubu remarked, highlighting that global supply chain disruptions have created a unique window of opportunity for African producers to attract the financing necessary for large-scale projects.

Navigating a Changing Funding Landscape

The quest for $750 million comes at a time when traditional European financing for fossil fuel projects is drying up due to environmental and social governance (ESG) pressures. Historically, Oando raised billions from European banks, but the company is now pivoting toward alternative funding sources:

• Regional Powerhouses: Indigenous firms are increasingly looking to the African Export-Import Bank (Afreximbank) and the Africa Finance Corporation (AFC).

• Consolidated Lending: This follows the successful model of the Dangote Petroleum Refinery, which secured a significant portion of its funding through African-led syndicated loans.

Regional Expansion and Market Stability

Oando isn’t just focusing on Nigeria. As part of a broader regional growth strategy, the company has established operations in Angola and is actively exploring opportunities in Ghana and the Ivory Coast.

Tinubu emphasized that even if current global conflicts reach a ceasefire, the risk of “consistent disruptions” in other major oil-producing regions will sustain long-term interest in Africa’s reserves.

The Bigger Picture: Africa’s Industrial Push

Oando’s $750 million drive is part of a wider trend of massive capital mobilization within the African energy sector:

• Dangote Group: Targeting $40 billion in investments over five years to expand its fertilizer and refining businesses, aiming for a $100 billion turnover by 2030.

• Regional Exports: The Dangote refinery has already begun exporting gasoline cargoes to other African nations, signaling a shift toward continental self-sufficiency.