Oando Plc is targeting production of approximately 100,000 barrels of oil equivalent per day in the medium term, with a development inventory of 62 wells and 55 planned well interventions expected to support the expansion.
The energy company disclosed this in its unaudited half-year 2026 results, saying its immediate priority was to complete a seven-well drilling programme and portfolio-wide well intervention campaign while delivering production of about 50,000boepd in 2026.
Oando’s average production rose 16 per cent year-on-year to 42,789 boepd in the first half of 2026, with the company saying its development programme had gathered momentum during the period.
It said two land development wells had been drilled and completed, while another land well was being drilled and a second drilling rig was being mobilised to accelerate activities across its operated portfolio.
The company said it was also carrying out an extensive programme of rig-less well interventions aimed at restoring production, sustaining plateau output and mitigating natural field decline.
Oando’s Group Chief Executive, Wale Tinubu, said, “Looking ahead in 2026, our priorities remain firmly centred on completing our seven-well drilling programme and portfolio-wide well intervention campaign while delivering production of circa 50,000 boepd.”
Tinubu added, “Beyond 2026, our identified inventory of 62 development wells, supported by 55 planned well interventions, provides a clear pathway towards our medium-term production ambition of approximately 100,000 boepd.”
The company’s production growth came alongside a reduction in production operating costs, which fell 18 per cent to $16.83 per barrel of oil equivalent from $20.62/boe in H1 2025.
Oando said the lower unit cost reflected cost optimisation initiatives, including reductions in transport, logistics, service and ICT costs, as well as the benefit of higher production across a largely fixed field cost base.
The company maintained its 2026 production guidance of between 40,000 boepd and 50,000 boepd, with capital expenditure projected at between $90m and $100m, focused on high-impact, short-cycle upstream activities.
The planned production expansion is expected to build on Oando’s enlarged upstream asset base following its acquisition activities, with the company saying its focus was now on converting the increased capacity into long-term value through cost control and cash flow optimisation.
The company’s H1 2026 revenue rose 20 per cent to N2.06tn, while profit after tax increased eight per cent to N68.6bn. Operating cash generated during the period stood at N179.5bn.
Tinubu said the company would also pursue a fundraising and balance-sheet restructuring programme.
He said, “Furthermore, we shall execute an intensive fundraising and balance sheet restructuring programme to optimise our capital structure, strengthen our financial position, improve working capital, enhance financial flexibility and ensure the business is appropriately funded to accelerate growth and maximise long-term shareholder value.”
He added, “We have built a resilient operating platform and established a clear roadmap for growth. Our focus is now on translating our significant opportunities into higher production, a stronger balance sheet and superior long-term returns for our shareholders.”
“When you share your news through GEN, you’re not just getting coverage – you’re getting endorsed by the energy sector’s most trusted voice.”