Oando Plc recorded a profit after tax of N220.1 billion for the full year ended 2024, marking a 267 per cent increase from the previous year. According to its recently released audited financial statements, the growth was supported by a 44 per cent rise in group revenue to N4.1 trillion, up from N2.9 trillion in 2023.
The company’s performance was driven largely by improvements in upstream operations and the partial-year contribution from its acquisition of Nigerian Agip Oil Company (NAOC), which was completed on August 22, 2024. This acquisition doubled Oando’s working interest in the OML 60–63 series from 20 per cent to 40 per cent, with its 2P reserves increasing by 95 per cent year-on-year to 983 million barrels of oil equivalent (MMboe).
Group Chief Executive, Wale Tinubu, described 2024 as “a defining year” for the company. “The successful acquisition and integration of NAOC has significantly deepened our upstream portfolio, resulting in our assumption of operatorship of the OML 60–63 series, as well as our 2P reserves from 500 million barrels of oil equivalent to 1 billion barrels,” he said.
Oando’s upstream production averaged 23,727 barrels of oil equivalent per day (boepd), representing a 3 per cent increase. Crude oil production rose by 27 per cent to 7,558 barrels per day (bopd), while natural gas liquids (NGLs) declined by 35 per cent to 156 bpd, and gas output fell by 5 per cent to 16,013 boepd. Operational uptime was maintained at 86 per cent.
In contrast, the company’s downstream business reported declines.
The trading arm sold 20.7 million barrels of crude oil in 2024, down 37 per cent from the previous year. Refined product volumes fell by 64 per cent to 599 thousand metric tonnes, attributed to weaker domestic demand in a difficult macroeconomic environment.
Oando has issued a production guidance of 30,000–40,000 boepd for 2025. This is aligned with its target of reaching 100,000 bopd and 1.5 trillion cubic feet (tcf) of gas by 2029.
Tinubu stated that 2025 would be “a year of execution,” focused on unlocking post-acquisition synergies, implementing a new security framework to reduce oil theft, and increasing operational efficiency.
He added, “We shall pursue a dual-track approach of rig-less interventions and well workovers, complemented by an aggressive drilling program.”
Oando also reported progress in its renewable energy segment. Its electric mass transit programme covered 121,145 km, transported over 205,000 passengers, displaced 163,546 kg of CO₂, and saved over 60,000 litres of diesel. The company also signed memoranda of understanding (MoUs) for wind energy projects with Cross River and Edo States and began a geothermal feasibility study in collaboration with NNPC.
Industry-wide, other local energy companies have also reported significant revenue growth amid the ongoing divestment of assets by international oil companies (IOCs). Seplat posted a 137 per cent increase in revenue to N1.65 trillion, while Aradel’s revenue rose by 162 per cent to N581.2 billion.
This shows a growing role for indigenous firms in Nigeria’s energy sector. Their operational control, local knowledge, and long-term commitment are seen as advantages in managing onshore and shallow water assets. Experts project that this shift is expected to enhance job creation, build capacity, and improve tax contributions to the Nigerian government, which previously lost such revenue to foreign firms through capital repatriation.
Global oil price projections remain uncertain, with Brent crude forecast to average $74 per barrel in 2025 and $66 in 2026, according to the U.S. Energy Information Administration. JP Morgan offers a more conservative view, projecting Brent to average $66 in 2025 and $58 in 2026.