Oando Plc has unveiled plans to raise $750 million this year to fund an aggressive drilling campaign aimed at increasing oil and gas output by up to 300 percent. The Nigerian energy company, which has steadily built its upstream portfolio through acquisitions from major international players over the past decade, is positioning itself to capitalize on improved investor sentiment toward West African producers amid heightened global energy market volatility.
Chief Executive Officer Wale Tinubu told Reuters the company is intensifying efforts to secure financing for as many as 100 new wells, with the goal of substantially boosting production from assets acquired from ConocoPhillips and Eni. Nigeria, Africa’s largest oil producer, currently pumps around 1.6 million barrels of crude and condensate per day. Oando’s production averaged just over 32,000 barrels of oil equivalent per day in fiscal 2025.
Tinubu said the company has historically faced difficulties raising capital for drilling, as investors once viewed Africa as an “unsafe environment.” However, the global energy landscape has shifted following Russia’s invasion of Ukraine in 2022 and recent instability linked to the Iran war. “Africa is very, very peaceful compared to these regions,” he said, noting that the disruptions in the Middle East and Eastern Europe have redirected attention and capital toward more stable producers.
The geopolitical turbulence has also altered trade flows, with Nigeria benefiting from increased demand from Asian buyers seeking alternatives to Gulf crude disrupted by the closure of the Strait of Hormuz. Tinubu said more Nigerian cargoes are now heading east to replace supplies trapped in the region.
Over the past decade, Oando has raised between $3 billion and $4 billion, primarily from European banks, much of it directed toward acquisitions. With European lenders largely withdrawing from African hydrocarbons due to climate concerns, the company is now engaging alternative financiers including the African Export-Import Bank, the African Finance Corporation, and oil trading houses such as Vitol, Trafigura, Glencore, and Mercuria. Tinubu emphasized the need for more substantial, long-term funding for Africa’s energy sector.
He also pointed to growing interest from Gulf banks and greater participation in syndicated deals, alongside increased activity from private equity funds and hedge funds. Oando recently expanded into Angola and is exploring opportunities in Ghana and Ivory Coast. Tinubu called for greater pooling of domestic capital—through pension funds and other local sources—to finance large-scale energy projects across the continent.
He argued that geopolitical turmoil will have “long-reaching strategic implications for global energy security,” ensuring continued focus on West Africa’s reserves. Even if ceasefires hold, he said, “you’re going to find disruptions consistently.” Nigeria, he added, is well placed to attract investment following a landmark 2021 overhaul of its hydrocarbon legislation and ongoing reforms by President Bola Tinubu, including currency liberalization and the removal of costly petrol subsidies.
The recent start-up of the 650,000-barrel-per-day Dangote refinery near Lagos, Tinubu noted, underscores the value of Nigeria’s resources and the potential for further industrial development.
