Oando Targets 100,000bpd Post-Nigerian Agip Oil Company, NAOC Acquisition

Nigerian multinational energy company Oando is targeting a production of 100,000 barrels per day (bpd) by 2028, following its landmark acquisition of Eni’s Nigerian Agip Oil Company (NAOC) earlier this year. The announcement, along with the company’s future expansion plans and role in Nigeria’s energy transition, was shared during an exclusive Fireside Chat at the African Energy Week: Invest in African Energies conference.

Speaking with Bloomberg News Correspondent Jennifer Zabasajja, Oando Executive Director Alex Irune discussed the company’s plans to contribute to Nigeria’s oil production and goal of exceeding 2 million bpd. He also highlighted the growing role of indigenous firms in the sector, particularly as international oil companies (IOCs) divest from onshore and shallow water assets.

“In the space of 24 months, you’re going to see about 60%-70% [of Nigeria’s production] by indigenous players, just based on the transition of IOCs to the deep offshore and the acquisitions we have seen, whether it’s Seplat, our deal or the ongoing Renaissance deal,” said Irune.

Oando is focused on maximizing the development of assets acquired through its deal, which increased its stake in OMLs 60, 61, 62 and 63 to 40% and nearly doubled its reserves to one billion barrels of oil equivalent. The company’s ownership in NAOC’s joint venture assets will also grow, including 40 oil and gas fields, 12 production stations, and key infrastructure including pipelines, processing plants and the Brass River Oil Terminal. Oando remains open to future mergers and acquisitions across the continent.

“We’re always looking to do a deal. We stay where we have a comparative advantage, but we don’t rule out any markets. Nigeria is the first place we look – we have an immense amount of potential. As a leading energy company, we owe it to the country to reach that potential.”

Irune also discussed the role of Nigeria’s Petroleum Industry Act (PIA) in strengthening the investment case, particularly for gas in Nigeria and fostering industry synergies. The Oando-NAOC deal was the first M&A transaction following the PIA’s implementation. Oando is leveraging the deal to boost oil and gas production, with a view to supporting Nigeria’s energy transition in the future.

“We are very serious about energy provision. When you frame the energy journey, there must be renewable energy in that basket. In the immediate term, our focus is on producing every drop of oil we can to be able to fund that transition journey. We will use gas as a transition fuel – our assets are largely gas assets as a company, and Nigeria is largely a gas province as a country.”

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