Oando Plc recorded N2.1 trillion revenue and N68.6 billion profit in the first half of 2026 as production increased 16 per cent, with the energy firm targeting 100,000 barrels of oil equivalent per day
Oando Posts N2.1tn Revenue, Targets 100,000 Barrels Daily After Strong H1 2026 Performance
By Lukman OMIKUNLE
Oando Plc has reported a strong financial performance for the first half of 2026, with revenue climbing 20 per cent to N2.1 trillion as higher production, improved operational efficiency and stronger reliability across its upstream assets boosted earnings.
The indigenous energy company also posted an eight per cent increase in profit after tax to N68.6 billion for the six months ended June 30, 2026, while gross profit surged by an impressive 331 per cent to N101 billion. Operating cash generation also rose significantly to N179.5 billion, underscoring stronger performance across its expanded upstream portfolio.
The company’s unaudited results showed average daily production increased by 16 per cent to 42,789 barrels of oil equivalent per day (boepd), compared with 36,836 boepd recorded in the corresponding period of 2025. Facility uptime also improved to 92 per cent from 85 per cent a year earlier.
The improved output was driven by new drilling activities, the restoration of previously shut-in wells and enhanced operational efficiency across Oil Mining Leases (OMLs) 60, 61, 62 and 63.
Crude oil production rose by 19 per cent to 12,358 barrels per day, while gas production increased 14 per cent to 28,497 boepd. Natural gas liquids (NGL) production also recorded a 16 per cent increase to 1,935 boepd.
Oando attributed the stronger operational performance to lower transportation, logistics, service and information technology costs, alongside higher production from assets operating on a largely fixed cost base.
The company’s trading division also expanded during the review period, with crude oil trading volumes rising by 2.1 per cent to 13.15 million barrels, supported by increased crude marketing, stronger offtake programmes and additional sourcing from marginal field producers.
Commenting on the results, Group Chief Executive, Wale Tinubu, described the first half of 2026 as a defining period for the company following the successful integration of one of Africa’s largest upstream acquisitions.
“The first half of 2026 marks an important inflexion point in Oando’s journey. Over the past two years, our priority has been to successfully integrate one of the most significant upstream acquisitions in Africa and unlock the full value of our expanded portfolio. The progress achieved during the period demonstrates that we are now delivering the operational and financial outcomes expected from that transformation,” he said.
Tinubu credited the improved earnings to stronger asset integrity, better facility reliability and enhanced security across the company’s operating areas.
According to him, those improvements lifted facility uptime to 92 per cent while reducing production operating costs by 18 per cent to $16.83 per barrel of oil equivalent.
He added that Oando accelerated its field development programme during the period with the successful drilling and completion of two land development wells. Another land well is currently being drilled, while a second drilling rig has been mobilised to speed up development across its operated assets.
The company also intensified rig-less well intervention programmes aimed at restoring production, sustaining output and mitigating natural field decline.
Oando said it is continuing an extensive drilling campaign across both its operated and non-operated assets this year. Following encouraging results from OMLs 60, 61, 62 and 63, the company plans to complete a seven-well drilling programme covering the Idu T, Samabri A and Ogbanbiri fields.
The drilling programme will be complemented by about 100 rig-less well intervention activities across its portfolio in 2026 to further increase production, sustain output and offset natural decline.
Looking ahead, Tinubu said the company’s immediate objective is to raise production to approximately 50,000 barrels of oil equivalent per day before pursuing a medium-term target of around 100,000 boepd.
He disclosed that Oando has already identified a development pipeline comprising 62 wells supported by 55 planned well intervention projects, which are expected to drive the company’s next phase of production growth and strengthen its position in Nigeria’s upstream oil and gas sector.
